On January 1 2011 Gong Corporation acquired 40 percent of
On January 1, 2011, Gong Corporation acquired 40 percent of the voting stock of Blue Corporation, an amount sufficient to exercise significant influence over Blue’s activities, for $4,800,000 in cash. On December 31, Gong determined that Blue paid dividends of $800,000 but incurred a net loss of $400,000 for 2011. Prepare T accounts to record this information.

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