White Corporation acquired 50,000 shares of the outstanding common stock of Gold Company for $12.00 per share.
The following events occurred during the year.
6/15/2015	Gold declared and paid $0.50 per share cash dividend.
12/10/2015	Gold declared and paid $0.55 per share cash dividend.
12/31/2015	Gold reported net income for the year of $325,000. The market price of Gold common stock was $25 per share on the last day of the year.
Instructions:
(a) Prepare the journal entries for White in 2015, assuming that the purchase of Gold stock constituted less than 10% of Gold's outstanding shares.
White treats this investment as available-for-sale securities.
(b) Prepare the journal entries for White in 2015, assuming that the purchase of Gold stock constituted 30% of Gold's outstanding shares.
Solutions:
Date	Account	Debit	Credit
	Less than 10% ownership:
1/1/2015	Available-for-sale Securities	600,000
	Cash		600,000
6/15/2015	Cash	25,000
	Dividend Revenue		25,000
12/10/2015	Cash	27,500
	Dividend Revenue		27,500
12/31/15	Available-for-sale Securities	650,000
	Unrealized Gain on Available-for-sale Securities		650,000
	30% ownership:
1/1/2015	Investment in Gold Company	600,000
	Cash		600,000
6/15/2015	Cash	25,000
	Investment in Gold Company		25,000
12/10/2015	Cash	27,500
	Investment in Gold Company		27,500
12/31/2015	Investment in Gold Company	97,500
	Income from Gold Company (30% x 325,000)		97,500