At a total cost of $942,000, Randall Corporation acquired 40,000 shares of Banjo Corp as a long term investment Randall Corporation uses the equity method of accounting for this investment Banjo Corp has 160,000 common shares outstanding, including the shares acquired by Randall Corporation Journal...

a Investment in Peters Corp Shares 6075 ...

At a total cost of $942,000, Randall Corporation acquired 40,000 shares of Banjo Corp. as a long-term

Question:

At a total cost of $942,000, Randall acquired 40,000 shares of Banjo Corp. as a long-term investment. Randall uses the equity method of accounting for this investment. Banjo Corp. has 160,000 common shares outstanding, including the shares acquired by Randall the entries by Randall to record the following information:
a. Banjo Corp. reports net income of $2,430,000 for the current period.
b. A cash of $1.75 per common share is paid by Banjo Corp. during the current period.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...