On March 2, Klaus AG acquired 500 of Max AG's 10,000 outstanding shares with a par...

 

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On March 2, Klaus AG acquired 500 of Max AG's 10,000 outstanding shares with a par value of S10 for $10,000 in cash. Klaus AG didn't have any significant influence on Max AG in this transaction. On April 1, Max AG declared and paid dividends of S500,000. Klaus AG reported income of $1,000,000 at the end of the period. Prepare the necessary journal entries in Klaus AG's book from the above information ! On March 2, Klaus AG acquired 500 of Max AG's 10,000 outstanding shares with a par value of S10 for $10,000 in cash. Klaus AG didn't have any significant influence on Max AG in this transaction. On April 1, Max AG declared and paid dividends of S500,000. Klaus AG reported income of $1,000,000 at the end of the period. Prepare the necessary journal entries in Klaus AG's book from the above information !

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