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On January 1, 2015 the West Company made 2 purchases: purchased 400 of the 900 shares of Kardashian Company for $80,000. At this time the
On January 1, 2015 the West Company made 2 purchases: | |||||||||
purchased 400 of the 900 shares of Kardashian Company for $80,000. At this time the book value of Kardashian's asset = fair market value | |||||||||
except for a car with a book value of $10,000 and a fair market value of $19000. This car has a life of 5 years and no salvage. | |||||||||
purchased 100 of the 200,000 shares of Madona Company for $60,000. All of Madonna's assets had a book value equal to market value | |||||||||
any excess is attributable to goodwill | |||||||||
WHEN WEST DOESN'T HAVE INFLUENCE HE ALWAYS USES AVAILABLE FOR SALE TO ACCOUNT FOR STOCK INVESTMENTS | |||||||||
1-Jul | Kardashian Company paid a $2 per share dividend | ||||||||
1-Aug | Madonna Company paid a $4 per share dividend | ||||||||
31-Dec | Kardashian Company reported income of $39000; its stock is selling for $211 per share | ||||||||
31-Dec | Madonna Company reported income of $140,000; its stock is selling for $98 per share | ||||||||
2016 | |||||||||
1-Jul | Kardashian Company paid a $2 per share dividend | ||||||||
1-Aug | Madonna Company announced they would not be paying any dividends this year | ||||||||
31-Dec | Kardashian Company reported a loss of $13000; its stock is selling for $99 per share | ||||||||
31-Dec | Madonna Company reported a loss of $40,000; its stock is selling for $211 per share | ||||||||
2017 | January 5th | West sold its entire investment in Kardashian for $100 per share | |||||||
January 5th | West sold its entire investment in Madonna for $202 per share | ||||||||
REQUIRED: | MAKE ALL JOURNAL ENTRIES WEST MAKES IN CONNECTION WITH ITS INVESTMENT IN KARDASHIAN AND MADONNA | ||||||||
FOR 2015, 2016 AND 2017.DON'T FORGET TO RECORD WEST'S PURCHASE OF THE STOCK. |
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