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On March 1, Parnell Industries purchased 2 million Platinum Gems, Inc. common shares for $124 million in cash. These shares represent 10% of the outstanding

On March 1, Parnell Industries purchased 2 million Platinum Gems, Inc. common shares for $124 million in cash. These shares represent 10% of the outstanding common stock of Platinum. Select the appropriate accounting method for this equity investment and journal entry to record this transaction. Group of answer choicesUse consolidation accounting and record the following journal entry: Dr. Investment in Platinum Gems, Inc. $2 million Cr. Cash $2 million

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