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On January 3, 2017, Nancy Corporation purchased the following equity securities as an investment: Number of Cost of Total Company Shares Share Cost A 400

On January 3, 2017, Nancy Corporation purchased the following equity securities as an investment:

Number of

Cost of

Total

Company

Shares

Share

Cost

A

400

$20

$ 8,000

B

2,000

12

24,000

C

800

22

17,600

These securities are classified as available-for-sale. Required:

a.

Prepare the journal entry to record the acquisition of the stock.

b.

On June 30, 2017, C Company paid dividends of $3.00 per share. Prepare the journal entry that would be used by Nancy to record the dividend receipt.

c.

On December 31, 2017, the market values per share were:

Company

Market Value

A

$22

B

12

C

20

Prepare any journal entry or entries necessary to record these changes in market value.

d.

On March 14, 2017, Nancy sold 800 shares of C Company for $18 per share. Prepare the journal entry to record the sale.

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