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On January 1, A Corporation, a publicly traded company, purchased 25% of B Ltd. common shares for $761,000. At December 26, B declared and paid
On January 1, A Corporation, a publicly traded company, purchased 25% of B Ltd. common shares for $761,000. At December 26, B declared and paid a $39,000 dividend and reported net income of $77,000. The shares' fair value at December 31 was $805,000. Record each of these transactions, assuming A has significant influence over B and is using the equity method to account for this investment
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