Question
On January 10, 2014, Badger Co. purchased 28% of the outstanding stock of Crest Co. for $189,000. Crest Co. paid total dividends to all shareholders
On January 10, 2014, Badger Co. purchased 28% of the outstanding stock of Crest Co. for $189,000. Crest Co. paid total dividends to all shareholders of $22,700 on July 15. Crest Co. had a net loss of $37,800 for 2014.
a. Journalize Badger's purchase of the stock, receipt of the dividends, and adjusting entry for the equity loss in Crest Co. stock.
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b. Compute the balance of Investment in Crest Co. Stock on December 31, 2014.
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