Tekky Corporation purchased an equity investment in Hui Zu. Ltd, on December 15 for $100,000. Tekky accounts
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Tekky Corporation purchased an equity investment in Hui Zu. Ltd, on December 15 for $100,000. Tekky accounts for the equity investment by using market comparable. Hui Zu, Ltd's equity is not actively traded, and it does not have a readily determinable fair value, bur fair value is estimated at $105,000 on December 31. Tekky does not have significant influence over the investee. The investment is sold on June 22 of the next year for $114,000. What are the necessary journal entries?
CorporationA 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...
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Under US GAAP Tekky records the purchase at cost as follows Acco...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-0134730370
2nd edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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