On july 1, 2009, Les Co. acquired 50,000 newly issued shares of Claypool Co. at 10 pesos
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Question:
On july 1, 2009, Les Co. acquired 50,000 newly issued shares of Claypool Co. at 10 pesos per share. Before the acquisition, Claypool had 100,000 ordinary shares outstanding. In 2009, Claypool reported profit of 5,000,000, 2,000,000 of which was earned during the first half of 2009. Claypool paid 9% annual cash dividends in 2009.
Rrequirements:
a. How much is Les Co.'s investment income in 2009?
b. How much is the balance of the investment in associate account on December 31, 2009?
c. Provide the journal entries in 2009
Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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