Question: On January 1 , 2 0 2 2 , American Corporation purchased 2 5 2 is of the outstanding voting shares of Short Supplies common

On January 1,2022, American Corporation purchased 252 is of the outstanding voting shares of Short Supplies common stock for $350,000 cash. On that date, Short's book value and falr value were both $1,400,000. The equity method is deemed approprlate for this investment. Short's net income reported on December 31,2022, was $100,000. During 2022, Short alse paid cash dividends in the amount of $36,000.
a) Prepare the journal entries necessary to record the above information on American Corporation's books during 2022.
-3
On January 1 , 2 0 2 2 , American Corporation

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