On January 1, 2010, Meredith Corporation purchased 25% of the ordinary shares of Pirates Company for 200,000.

Question:

On January 1, 2010, Meredith Corporation purchased 25% of the ordinary shares of Pirates Company for £200,000. During the year, Pirates earned net income of £80,000 and paid dividends of £20,000.

Instructions

Prepare the entries for Meredith to record the purchase and any additional entries related to this investment in Pirates Company in 2010.

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...