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Please I need the answer ASAP 1.ABC Company acquired 20% (25,000 shares) of outstanding common stock of XYZ Company for $600,000 on January 1, 2022.
Please I need the answer ASAP
1.ABC Company acquired 20% (25,000 shares) of outstanding common stock of XYZ Company for $600,000 on January 1, 2022. XYZ Company declared and paid$.20 per share cash dividends on June 30 and on December 31, 2022. XYZ Company reported net income of $$300,000 for 2022. The Fair value of XYZ Company stock was$26 per share at December 31, 2022.
- Prepare journal entries for ABC Company for 2022, assuming that ABC cant exercise significant influence over XYZ.
- Prepare journal entries for ABC Company for 2022, Assuming that ABC can exercise significant influence over XYZ.
, 2022
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