Turner Company purchased 40% of the outstanding stock of ICA Company for $10,000,000 on January 2, 2024.
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Turner Company purchased 40% of the outstanding stock of ICA Company for $10,000,000 on January 2, 2024. Turner elects the fair value option to account for the investment. During 2024, ICA reports $750,000 of net income, and on December 30 pays a dividend of $500,000. On December 31, 2024, the fair value of Turner’s investment has increased to $11,500,000. What journal entries would Turner make to account for this investment during 2024, assuming Turner will account for the investment using the fair value through net income approach?
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Given Turners election of the fair value option it would account for this investment similar to an i...View the full answer
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