On April 1, 2020, Campbell Corp. acquired 2,500 shares of Lipton Inc. for $50,000. This investment represents a 18% interest in Lipton Inc. and Campbell Corp. has significant influence. On October 31, 2020, Lipton Inc. paid a $42,000 dividend to its shareholders. At March 31, 2021 Lipton Inc.'s shares were valued at $15 per share and Lipton Inc. reported a net loss of $150,000 for the year. On May 15, 2021, Campbell Corp. sold the shares for $75,000. Both Campbell Corp. and Lipton Inc. have March 31, 2021 year-ends.

Required: 

Prepare dated journal entries for the investment on the acquiring company's books from acquisition to disposal. 

 

Answer rating: 100% (QA)

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