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On January 1 , 2 0 2 2 , Winnie Corporation purchased 2 0 % ( 5 , 0 0 0 shares ) of the
On January Winnie Corporation purchased shares of the outstanding stock
of Naomi Corporation for $ At the end of Naomi Corporations stock had a fair
market value of $ per share and at the end of the stock had a fair market value of $ per
share.
During Naomi Corporation paid dividends of $ per share and earned $ in net
income.
a Prepare the journal entries that Winnie would make during assuming that
they do NOT have significant influence over Naomi as a result of their stock
ownership ie fair value method
b Prepare the journal entries that Winnie would make during assuming that
they do have significant influence over Naomi as a result of their stock ownership
ie equity method
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