Blossom Co. acquired 25% of the 450,000 shares of outstanding common stock of Wildhorse Inc. on December 31, 2025. The purchase price was $3,330,000. Wildhorse declared and paid $1.20 per share cash dividends on June 18, 2026, and on November 29, 2026. Wildhorse reported net income of $1,080,000 for 2026. The fair value of Wildhorse common stock was $28 per share at December 31, 2026. 

Required:

 Prepare the journal entries for Blossom Co. for 2026, assuming that Blossom cannot exercise significant influence over Wildhorse.

Answer rating: 100% (QA)

If Blossom Co cannot exercise significant influence over Wildhorse it would account for its investme... View the full answer