On January 1st, 2022, Motors Inc. bought 30% of the outstanding stock of Bicycle Inc. for $6,000,000.
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- On January 1st, 2022, Motors Inc. bought 30% of the outstanding stock of Bicycle Inc. for $6,000,000. Bicycle Inc. also paid a dividend of $100,000 to all shareholders on December 31st, 2022. Additionally, as of December 31st, 2022, Bicycle Inc. reported Net Income of $2,000,000.
- a. Record all journal entries of Motors Inc. with respect to Bicycle Inc. stock for the year 2022.
- b. What method of accounting for equity investments will Motors Inc. use?
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119740445
13th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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