Question
On January 10, 2022. Orion Corp. purchased 25% of the common shares of Star Company for $600.000 During the year, Star earned net income
On January 10, 2022. Orion Corp. purchased 25% of the common shares of Star Company for $600.000 During the year, Star earned net income of $900,000 and paid dividends to common shareholders totaling $550,000. On March 30, 2023, Orion sells the entire investment in Star Company for $700.000. Assume that Orion has significant influence over Star and does not elect the fair value option. Prepare Orion's journal entries for the 1. Purchase of the investment 2. Net income 3. Dividends Sale of the investment (Hint: Calculate the value of the investment at the end of 2022)
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
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