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Question 2 (9 points) On January 1, 2020, CC Company acquired 60,000 shares of RR Limited at $5 per share, representing 20% of RR's outstanding
Question 2 (9 points) On January 1, 2020, CC Company acquired 60,000 shares of RR Limited at $5 per share, representing 20% of RR's outstanding voting shares. On July 31, 2020, RR declared and paid a dividend of $1 per share. RR's net income for 2020 was $2,800,000. On December 31, 2020, the shares of RR were trading on the Toronto Stock Exchange at $16 per share. On January 15, 2021 all of the shares were sold for $18 per share. Required: Provide the journal entries on CC's books relating to its investment in RR for 2020 and 2021, assuming that CC classifies RR as an associate using the equity method. Paragraph ~ B I U
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