On August 4. 2002. Coffman Corporation purchased 1 .000 shares of Dittman Company for S45.000.

The following information applies to the stock price of Dittman Compam :

Dittman Company declares and pays cash dividends of $2 per share on June 1 of each \ear.
Required: 1. Prepare journal entries to record the facts in the case, assuming that Coffman purchased the shares for the trading portfolio. 2. Prepare journal entries to record the facts in the case, assuming that Coffman purchased the shares for the available-for-sale portfolio. 3. Prepare journal entries to record the facts in the case, assuming that Coffman used the equity method to account for the investment. Coffman owns 30 percent of Dittman and Dittman reported

$50,000 in income each year.

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Price 12/31/2002 12/31/2003 $52 47 12/31/2004 38