Flint Corporation purchased a 20% interest in Moss Inc. for $160. This investment gave Flint significant influence over Moss. During the year, Moss earned a net income of $15 and paid dividends of $5. Assuming the purchase price was equal to 20% of Moss’s net carrying amount when it was acquired. 

Prepare Flint’s journal entries related to this investment using the equity method. Flint applies IFRS.

Answer rating: 100% (QA)

Journal entry Date accounts explanation debit credit Investmen... View the full answer