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Teddy Corporation owns 29,000 shares of common stock of Betty Corp as an investment. The balance of this investment account at January 1 2022, is
Teddy Corporation owns 29,000 shares of common stock of Betty Corp as an investment. The balance of this investment account at January 1 2022, is $500,000 (already recorded). During 2022, Betty Corp. reported total Net Income of $3,000,000 and paid total dividends of $900,000 to all shareholders. At Dec. 31, 2022, the fair value of Betty Corp. stock was $24 per share. A)Assuming that 29,000 shares represent a 2% interest in Betty Corp., prepare any entries that Teddy Corporation should make to account for its investment in Betty stock during 2022. B)Assuming that the 29,000 shares represent a 35% interest in Betty Corp. and that this percentage of ownership gives Teddy significant influence over Betty Corp., prepare any entries that Teddy Corporation should make to account for its investment in Betty| stock during 2021
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