On January 2,2020 BK corp. purchased 35000 shares (35%) of the common stock of XYZ &company and gained significant influence over XYZ. The total purchase price was $350,000. There was no amortization of excess fair value required. During 2020, XYZ reported an income of $ 175,000 and was paid dividends of $60,000. On January 2, 2021, BK sold 13,000 shares of $142,000 in cash. 

Question: 

A. Compute the balance in Equity investment at December 31, 2020 

B. Prepare the journal entry to record the sales of the 13000 shares on January 2,20201. 

C. What was the balance in equity investment after the shares were sold?

Answer rating: 100% (QA)

Lets break down the questions step by step A Compute the balance in Equity investment at December 31 ... View the full answer