Question
On January 1, 2021,HeadlandsLtd., a private company reporting under ASPE, purchased25% of the common shares ofBlueCorporation for $203,000.Bluereported profit of $99,000for 2021 and paid dividends
On January 1, 2021,HeadlandsLtd., a private company reporting under ASPE, purchased25% of the common shares ofBlueCorporation for $203,000.Bluereported profit of $99,000for 2021 and paid dividends of $13,900on December 31, 2021.Headlands's year end is December 31.
Assuming that there is not a quoted market price forBlue's shares, and thatHeadlandselects to report investments with significant influence using the cost method, prepare the required journal entries.
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Financial And Managerial Accounting
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
4th Edition
1119752620, 978-1119752622
