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On January 1, 2019 Boston Company purchased 20% of the common stock of Atlanta Company for USD 1,500,000 paid in cash (acquired at book value,

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On January 1, 2019 Boston Company purchased 20% of the common stock of Atlanta Company for USD 1,500,000 paid in cash (acquired at book value, Atlanta Company stockholder's equity is USD 7,500,000). a. Prepare the journal entry booked by Boston Company to record the purchase of stock if the investment is considered to be non influential (classified as Held for Trading). (5 points) b. Prepare the journal entry booked by Boston Company to record the purchase of stock if the investment is considered to be of significant influence (Equity Method). (5 points) On December 31, 2019 Atlanta Company declared net income for the year of USD 1,200,000 and declared and paid dividends of USD 200,000. There were no other events or transactions during the year related to shareholders equity. On December 31, 2019 after Atlanta Company declared its earings and paid the declared dividends, the market valued (fair value) its common stock went from USD 7,500,000 to USD 8,500,000 c. Prepare the journal entries booked by Boston Company to record the above events for its reporting on December 31, 2019, if the investment is considered to be non influential (classified as Held for Trading). What is the reported value of Investment in Atlanta in the balance sheet of Boston Company on December 31, 2019 after the entries have been recorded? (10 points) d. Prepare the journal entries booked by Boston Company to record the above events for its reporting on December 31, 2019, if the investment is considered to be of significant influence (Equity Method). What is the reported value of Investment in Atlanta in the balance sheet of Boston Company on December 31, 2019 after the entries have been recorded? (10 points)

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