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On January 1,2023 , Rohan Ltd paid $840,000 to purchase 40,000 shares of Bergnaum Corporation at $21 per share. Bergnaum has 1,000,000 outstanding shares, so
On January 1,2023 , Rohan Ltd paid $840,000 to purchase 40,000 shares of Bergnaum Corporation at $21 per share. Bergnaum has 1,000,000 outstanding shares, so this investment represents less than 5% of Bergnaum's outstanding shares. During 2023, Bergnaum recognized net income of $2,000,000 and paid dividends of $1.40 per share. On December 31,2023 , the market value of Bergnaum shares was $43 per share. Prepare the journal entry to record Rohan's investment in Bergnaum. [2.5 points] No Journal Entry Required Prepare Rohan's journal entry related to Bergnaum's net income. [2.5 points] No Journal Entry Required Drepare Rohan's year-end adjusting entry related to its investment in Bergnaum. [2.5 points]
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