Question: On May 20 2013 Montero Co paid 1 000 000 to
On May 20, 2013, Montero Co. paid $ 1,000,000 to acquire 25,000 common shares (10%) of ORD Corp. as a long- term investment. On August 5, 2014, Montero sold one-half of these shares for $ 625,000. What valuation method should be used to account for this stock investment? Prepare entries to record both the acquisition and the sale of these shares.
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