Question
On May 1, 2020, Bear Inc. acquired 2,250 shares of Cub Ltd. for $75,000. This investment represents a 12% interest in Cub Ltd. Bear Inc.
On May 1, 2020, Bear Inc. acquired 2,250 shares of Cub Ltd. for $75,000. This investment represents a 12% interest in Cub Ltd. Bear Inc. has classified this investment as FVTLP. On December 31, 2020, Cub Ltd. paid a $34,000 dividend to its shareholders. At June 30, 2021, Cub Ltd.'s shares were valued at $30 per share and Cub Ltd. reported a net loss of $35,000 for the year. On July 15, 2021, Bear Inc. sold the shares for $78,000. Both Bear Inc. and Cub Ltd. have June 30, 2021 year-ends.
Required: Prepare dated journal entries for the investment on the acquiring company's books from acquisition to disposal. Ignore income taxes. Journal entry descriptions are optional
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