Question: Kinross Gold Corp., introduced in the chapter-opening story, owns equity-method investments in several companies. Suppose Kinross paid $12,000,000 to acquire a 40-percent investment in Minecraft

Kinross Gold Corp., introduced in the chapter-opening story, owns equity-method investments in several companies. Suppose Kinross paid $12,000,000 to acquire a 40-percent investment in Minecraft Ltd. Further, assume Minecraft Ltd. reported net income of $1,780,000 for the first year and declared and paid cash dividends of $650,000. Record the following entries in Kinross's general journal:
(a) Purchase of the investment,
(b) Kinross's proportion of Minecraft Ltd.'s net income, and
(c) Receipt of the cash dividends. Disregard commissions on the purchase.

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