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Problem II: (15 points) Stockton Inc., a calendar year-end company, made a stock investment in 2020. On 4/1/2020, it purchased 2,000 shares of Winter
Problem II: (15 points) Stockton Inc., a calendar year-end company, made a stock investment in 2020. On 4/1/2020, it purchased 2,000 shares of Winter Corp. stock for $90 per share. The share amount purchased represents less than 5% of Winter Corp.'s total number of shares outstanding. On 10/1/2020, it received a cash dividend of $2.00 per share. On 12/31/2020, the shares had a market value of $70 per share. On 2/15/2021, all the shares were sold for $75 per share. Required: In the journal on the next page, prepare Stockton's journal entries for the above dates. Important: Although closing entries would be prepared in real life, do not show them as part of this exercise.
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