Parent purchased a 30% holding in Associate's common shares on January 1, 2020 for $1 million,...

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Parent purchased a 30% holding in Associate's common shares on January 1, 2020 for $1 million, at the date of acquisition, the retained earnings of Associate is $3 million. On December 31, 2022, Associate's retained earnings were $9.2 million. An impairment test conducted at year end revealed that the investment in the associate was impaired by $200,000. Requirement a.) Prepare the journal entry for the initial acquisition of the associate on January 1, 2020 b.) Calculate the investment in associate account as at December 31, 2022 Parent purchased a 30% holding in Associate's common shares on January 1, 2020 for $1 million, at the date of acquisition, the retained earnings of Associate is $3 million. On December 31, 2022, Associate's retained earnings were $9.2 million. An impairment test conducted at year end revealed that the investment in the associate was impaired by $200,000. Requirement a.) Prepare the journal entry for the initial acquisition of the associate on January 1, 2020 b.) Calculate the investment in associate account as at December 31, 2022

Answer rating: 100% (QA)

a Journal entry for the initial acquisition of the associate on Ja... View the full answer