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On January 1, 2020 Gulf Co, purchased 80,000 shares of Bahrain Cocommon stock for $1,600,000 cashy granting Gulf 10% interest and the ability to exercise

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On January 1, 2020 Gulf Co, purchased 80,000 shares of Bahrain Cocommon stock for $1,600,000 cashy granting Gulf 10% interest and the ability to exercise significant influence. The excess value of $36,000 of cost over book value was attributed solely goodwill Bahrain reported net income of $360,000 and declared dividend of $55,000 for the year 2020 and net income of $420,000 and dividend of $120.000 for the year 2021, distributed evenly over the year On November 1, 2021 Gulf sold 30,000 of the shares in Bahrain Co. for $12 each but molntains its si praticant influence with so ownership Interest Required: (4 points) 1. Prepare the journal entries to record (please leave a line between entries) x Golf investment in Balan lanuary 1, 2020 Galt share of Bahrain income and dividend for the year 2021 2. Calculate the resultant gain or loss from the sale of the shares 3. What the total effect in the 2021 Gulf Co. Income statement On January 1, 2020 Gulf Co, purchased 80,000 shares of Bahrain Cocommon stock for $1,600,000 cashy granting Gulf 10% interest and the ability to exercise significant influence. The excess value of $36,000 of cost over book value was attributed solely goodwill Bahrain reported net income of $360,000 and declared dividend of $55,000 for the year 2020 and net income of $420,000 and dividend of $120.000 for the year 2021, distributed evenly over the year On November 1, 2021 Gulf sold 30,000 of the shares in Bahrain Co. for $12 each but molntains its si praticant influence with so ownership Interest Required: (4 points) 1. Prepare the journal entries to record (please leave a line between entries) x Golf investment in Balan lanuary 1, 2020 Galt share of Bahrain income and dividend for the year 2021 2. Calculate the resultant gain or loss from the sale of the shares 3. What the total effect in the 2021 Gulf Co. Income statement

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