Assume the same facts as in QS 15 7 except that the stock acquired represents 40 of TKR Corp s outstanding stock Also assume that TKR Corp paid a $125,000 dividend on November 1, 2011, and reported a net income of $550,000 for 2011 Prepare the entries to record (a) The receipt of the dividend and (b) The December 31, 2011, year end adjustment required for the investment account

Question: Assume the same facts as in QS 15-7 except that the stock acquired represents 40% of TKR Corp.s outstanding stock. Also assume that TKR Corp.

Assume the same facts as in QS 15-7 except that the stock acquired represents 40% of TKR Corp.’s outstanding stock. Also assume that TKR Corp. paid a $125,000 on November 1, 2011, and reported a net income of $550,000 for 2011. Prepare the entries to record
(a) The receipt of the and
(b) The December 31, 2011, year-end adjustment required for the investment account.

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