Question
La Perla Cosmetics, Inc. purchased 10% of Nevins Fashion's 200,000 common shares at a total cost of US $ 13 per share on March 18,
La Perla Cosmetics, Inc. purchased 10% of Nevins Fashion's 200,000 common shares at a total cost of US $ 13 per share on March 18, 2017. On June 30, Nevins Fashion declared and paid a dividend of US $ 60,000. On December 31st, Nevins Fashion reported a net income of US $ 122,000 for the current year. As of December 31, the market price of Nevins Fashion was US15 per share. The stock is classified as available for sale ('as available-for-sale'). Kanza, Inc., gained significant influence over Rogan Corporation by purchasing 40% of the 30,000 outstanding common shares of Rogan Corporation at a total cost of US $ 9 per share on January 1, 2017. On June 15, Rogan Corporation Declare and pay a cash dividend of $ 30,000. As of December 31, Rogan Corporation reported a net income of US $ 80,000 for the current year. Instructions: Prepare and submit all applicable records required for 2017 for (a) La Perla Cosmetics, Inc. and (b) Kanza, Inc.
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