Question: Poot Corporation purchased a 40 interest in Moss Inc for
Poot Corporation purchased a 40% interest in Moss, Inc. for $100. T his investment gave Poot significant influence over Moss. During the year, Moss earned net income of $15 and paid dividends of $5. Assuming the purchase price was equal to 40% of Moss's net carrying amount when it was acquired, prepare Poot's journal entries related to this investment using the equity method. Poot applies IFRS.
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