Question: Julip Corporation purchased a 25 interest in Krov Corporation on
Julip Corporation purchased a 25% interest in Krov Corporation on January 2, 2014, for $1,000. At that time, the carrying amount of Krov's net assets was $3,600. Any excess of the cost of the investment over Julip's share of Krov's carrying amount can be attributed to unrecorded intangibles with a useful life of 20 years. Krov declared and paid a dividend of $12 and reported net income of S60 for its year ended December 31, 2014. Prepare Julip's 2014 entries to record all transactions and events related to the investment in its associate. Assume Julip is a publicly accountable enterprise that applies IFRS.
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