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Problem - On January 1, 2018, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $210,000 cash. On that

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Problem - On January 1, 2018, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $210,000 cash. On that date, Short's book value and fair walu were both $40,000. The equity method is deemed appropriate for this investment Short's net income reported on December 31, 2018, was 50,000. During 2018, Short also paid cash dividends in the amount of $24.000 Required: Prepare the journal entries necessary to record the above information on American Corporation's books during 2018. (There should be a total of the journal entries 1/ 12/31/1 What is the value of the investment at December 31, 2018? (Show work)

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