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Require help to show work on the accounting paper! On October 1, 2021, The Dontfalemy Company made the following investments: - 2,100 shares (10%) of
Require help to show work on the accounting paper!
On October 1, 2021, The Dontfalemy Company made the following investments: - 2,100 shares (10%) of the common stock of ABC Corp. for $2,100,000. - 2% of the preferred stock of ABD, Inc. for $3,720,000. 5,140 shares (8%) of the common stock of The ABE Co. for $2,570,000. A 30\% interest in the ABF Corporation for $3,360,000 On December 30, 2021, Dontfalemy acquired 600 debentures of the ABG Company at their face value, to be held to maturity. As of December 31, 2021, Dontfalemy made adjusting journal entries for these investments, based on the following information. - The market value of the investment in ABC Corp. is $2,650,000. - The market value of the investment in ABD, Inc. is $3,590,000. - The market value of the investment in The ABE Co. is $2,840,000. - The market value of the investment in the ABF Corporation, which had net income for the year of $2,300,000, is $3,660,000. - The market value of the investment in the ABG Company debentures is $625,000. - Cash dividend payments received from the investments at December 31, 2021 totaled $288,000, with $121,000 of that amount coming from the ABF Corporation. The ABG Company will not make any interest payments until 2022. Prepare the journal entries that Donfalemy made for its investments at December 31 , 2021Step by Step Solution
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