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The following are two independent situations. Founder Cosmetics acquired 10% of the 212,000 shares of common stock of Martinez Fashion at a total cost of
The following are two independent situations. Founder Cosmetics acquired 10% of the 212,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2017. On June 30, Martinez declared and paid $76, 400 cash dividend to all stockholders. On December 31, Martinez reported net income of $125, 800 for the year. At December 31, the market price of Martinez Fashion was $14 per share. Culver, Inc. obtained significant influence over Seles Corporation by buying 40% of Seles's 31, 700 outstanding shares of common stock at a total cost of $9 per share on January 1, 2017. On June 15, Seles declared and paid cash dividends of $33, 100. On December 31, Seles reported a net income of $77, 900 for the year. Prepare all necessary journal entries in 2017 for both situations
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