10 points On January 1, 2021, Corzine Inc. acquired 15% of Hammon Co.'s outstanding common stock...

Transcribed Image Text:

10 points On January 1, 2021, Corzine Inc. acquired 15% of Hammon Co.'s outstanding common stock for $82,400 and did not exercise significant influence. Hammon eamed net income of $90,000 in 2021 and paid dividen $36,000. The fair value of Corzine's investment was $80,000 at December 31, 2021. All companies involved have a December 31 year end. REQUIRMENT: Prepare all of Cozine's 2021 journal entries to apply the appropriate method to this investment Format of answer in a professional accounting format requiring (1)-Description Date (2) Rest CR and CREDIT in front of ACCOUNT (3) use the proper account name used in this coursedextbook (4) place dollar amount Example 12/31/2000 Recognize Pension Expense DR. Pension Expense 1,000 CR. Pension Liability 1,000 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) 10 points On January 1, 2021, Corzine Inc. acquired 15% of Hammon Co.'s outstanding common stock for $82,400 and did not exercise significant influence. Hammon eamed net income of $90,000 in 2021 and paid dividen $36,000. The fair value of Corzine's investment was $80,000 at December 31, 2021. All companies involved have a December 31 year end. REQUIRMENT: Prepare all of Cozine's 2021 journal entries to apply the appropriate method to this investment Format of answer in a professional accounting format requiring (1)-Description Date (2) Rest CR and CREDIT in front of ACCOUNT (3) use the proper account name used in this coursedextbook (4) place dollar amount Example 12/31/2000 Recognize Pension Expense DR. Pension Expense 1,000 CR. Pension Liability 1,000 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)