BlackBerry owns equity-method investments in several companies. Suppose BlackBerry paid $1,000,000 to acquire a 25% investment in

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BlackBerry owns equity-method investments in several companies. Suppose BlackBerry paid $1,000,000 to acquire a 25% investment in Thai Software Company. Thai Software reported net income of $640,000 for the first year and declared and paid cash dividends of $420,000.
1. Record the following in BlackBerry's journal: (a) purchase of the investment, (b) BlackBerry's proportion of Thai Software's net income, and (c) receipt of the cash dividends.
2. What is the ending balance in BlackBerry's investment account?

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Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT a LongTerm Investment 100000...View the full answer

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