Man Corporation purchased a 40 percent interest in Nib Corporation for $2,000,000 on January 1, at book

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Man Corporation purchased a 40 percent interest in Nib Corporation for $2,000,000 on January 1, at book value, when Nibs's assets and liabilities were recorded at their fair values. During the year, Nib reported net income of $1,200,000 as follows (in thousands):
Income from continuing operations .......................... $1,400
Less: Loss from discontinued operations ..................... (200)
Net income ...................................................... $1,200
Required
Prepare the journal entry on Man's books to recognize income from the investment in Nib for the year.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Advanced Accounting

ISBN: 978-0133451863

12th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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