Question
On January 1 Dolly Parton Corporation purchased a 35% equity in Fabulous Wig Corporation for $220,000. At December 31 Fabulous Wig Corp. declared and paid
On January 1 Dolly Parton Corporation purchased a 35% equity in Fabulous Wig Corporation for $220,000. At December 31 Fabulous Wig Corp. declared and paid a $60,000 cash dividend and reported net income of $200,000.
Instructions
(a) Journalize the transactions.
(b) Determine the amount to be reported as an investment in Fabulous Wig Corp. stock at December 31.
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The Successful Audit New Ways To Reduce Risk Exposure And Increase Efficiency
Authors: Felix Pomeranz
1st Edition
1556233914, 978-1556233913
