On May 20, Montero Co. paid $150,000 to acquire 30 shares (4%) of ORD Corp. as a

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On May 20, Montero Co. paid $150,000 to acquire 30 shares (4%) of ORD Corp. as a long-term investment. On August 5, Montero sold one-tenth of the ORD shares for $18,000.

1. Prepare entries to record both

(a) The acquisition

(b) The sale of these shares.

2. Should this stock investment be reported at fair value or at cost on the balance sheet?

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Fundamental Accounting Principles

ISBN: 978-1259916960

24th edition

Authors: John J Wild, Ken Shaw

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Question Posted: Jul 10, 2019 07:22 AM

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On May 20, Montero Co. paid $150,000 to acquire 30 shares (4%) of ORD Corp. as a

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Fundamental Accounting Principles

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