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please fill all parts out, thank u! 25. Investments - Equity Securities - Prepare the journal entries as described below for Carp Logistics under BOTH
please fill all parts out, thank u!
25. Investments - Equity Securities - Prepare the journal entries as described below for Carp Logistics under BOTH Fair Value Method (Passive) and Equity Method (Significant Influence). If "No Entry" is needed, please indicate. a) On May 2, 2019, Carp Logistics acquired 5,000 shares of common stock of Leo Transportation Corporation for $50,000 (\$10/share). b) On August 15, 2019, Leo Transportation declared and paid a dividend of $4,000 to all shareholders. Carp Logistics received $800 ( 20% of the total dividend). c) On December 31, 2019, Leo Transportation Corporation reported net income of $80,000. (Carp's 20% share is $1.600). d) At December 31, 2019, Leo Transportation Corporation shares were trading at $9 per share and the fair value of Carp's shares was $45,000 ( $9 per share x5,000 shares) Step by Step Solution
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