Question
Problem 4: On 01/03/22, Z Corporation purchased the following equity securities as an investment. None of these purchases gave Z the ability to significantly influence
Problem 4: On 01/03/22, Z Corporation purchased the following equity securities as an investment. None of these purchases gave Z the ability to significantly influence operations of the investee.
| Company | No. of Shares | Share Price when Purchased | Share Price at 12/31/22 |
| A | 400 | $20 | $19 |
| B | 2,000 | $12 | $13 |
Prepare journal entries to record the following:
The acquisition of the stock investments.
Nancy received dividends of $1 per share on the B Company Stock.
The change in share price as of 12/31/22.
The sale of the A Company stock for $18 per share.
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