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Business, 21.01.2021 22:30 pineapplefun

Prepare journal entries for the transactions below relating to an Equity Investment accounted for using the equity method. a. An investor purchases 12,000 common shares of an investee at $10 per share; the shares represent 20% ownership in the investee and the investor concludes that it can exert significant influence over the investee. b. The investee reports net income of $100,000. c. The investor receives a cash dividend of $1.00 per common share from the investee. d. The investor sells all 12,000 common shares of the investee for $150,000.

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