Question
PLEASE TYPE OUT THE ANSWER TO THE QUESTION. HANDWRITTEN RESPONSES IS HARD FOR ME TO READ. THANK YOU On March 1, 2020 Current Properties paid
PLEASE "TYPE" OUT THE ANSWER TO THE QUESTION. HANDWRITTEN RESPONSES IS HARD FOR ME TO READ. THANK YOU
On March 1, 2020 Current Properties paid $1,000,000 for 40 percent of the shares of Sealy Enterprises. Current exerts significant influence over Sealy.
a. Sealy reported earnings of $500,000 during 2020 . Record this journal entry for Current.
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b. Sealy paid dividends of $60,000 during October 2020. Record this journal entry for Current.
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c. What amount would Current report on its balance sheet as investment in Sealy at 12/31/2020?
(Hint: Use a T-account to help you with this answer)
d. Sealy reported earnings of $540,000 during 2021. Record this journal entry for Current.
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e. Sealy paid dividends of $65,000 during October 2021. Record this journal entry for Current.
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f. On December 30, 2021 Current sells its entire investment in Sealy for $1,400,000. Record the journal entry (Hint: Use a T-account to help you with this answer).
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
978-1259277160
