Company D pays $8,000 to own 40% of ABCs voting stock on Jan. 1, 2020. ABC reports

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Company D pays $8,000 to own 40% of ABC’s voting stock on Jan. 1, 2020.

ABC reports net income of $3,000 for the year ended Dec. 31, 2020. On Dec. 31, 2020,

ABC pays cash dividend of $2,000 to its investors. On Feb. 23, 2021, Company D sells all the ABC stock for $8,200.

Please make necessary journal entries for the three dates indicated above.

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Advanced Accounting

ISBN: 978-1118037911

1st Canadian Edition

Authors: Gail Fayerman

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Posted Date: Jul 20, 2023 03:22 AM

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Company D pays $8,000 to own 40% of ABCs voting stock on Jan. 1, 2020. ABC reports

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Advanced Accounting

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