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On May 1, 2020, Wang Company, a public company, acquired 230,640 of the 744,000 outstanding common shares from Zahra Company for a total of $1,945,000. This investment is part of Wang Companys long-term business diversification plan. Wang Companys year-end is December 31, and it chooses to use the equity method of accounting for its strategic investments. During 2020, the following investment activities occurred.

1) Zahra Company recorded an annual net income of $848,000 for its 20192020 fiscal year-end of June 30, 2020. 2) Zahra Company paid a cash dividend of $245,000 on July 30, 2020. Required Prepare journal entries to record the acquisition of shares by Wang Company, the revenue of investment from Zahra Company on June 30, 2020 and the receipt of cash dividends on July 30, 2020. For simplicity, calculate any share of profit strictly as a percentage of the current holdings, although those shares have not been held for a full year. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number.

Date	Account Title and Explanation	Debit	Credit
May 1	AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment	Answer
	AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment		Answer
	To record acquisition of common shares
Jun 30	AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment	Answer
	AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment		Answer
	To record profit on equity investment
Jun 30	AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment	Answer
	AnswerBrokerage Fee ExpenseCashDividend RevenueGain on Sale of InvestmentInterest ReceivableInterest RevenueInvestment in Company SharesLong-Term Investment - BondsLong-Term Investment - SharesLoss on Sale of InvestmentRevenue from Investment in Company SharesShort-Term Investment - BondsUnrealized Gain on Fair Value AdjustmentUnrealized Loss on Fair Value AdjustmentValuation Allowance for Fair Value Adjustment		Answer
	To record dividends received on equity investment