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Question 5 of 7 -/3.57 ! SwiftyInc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase
Question 5 of 7 -/3.57 ! SwiftyInc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,053,400for45,800shares. Kulikowski Inc. declared and paid an $0.80per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $742,000for 2021. The fair value of Kulikowski's stock was $26per share at December 31, 2021. Part 1 Prepare the journal entries for Swifty Inc. for 2020 and 2021, assuming that Swifty cannot exercise significant influence over Kulikowski. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation (To record dividend.) (To record fair value.) Debit Cred
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