Question: Please answer for a like! Question 1: Mary's Magic Marshmellows Inc. (MMM) purchases an investment of 50,000 shares of Clark's Chocolate Creations Inc. (CCC). Their

Please answer for a like!

Please answer for a like! Question 1: Mary's Magic Marshmellows Inc. (MMM)

Question 1: Mary's Magic Marshmellows Inc. (MMM) purchases an investment of 50,000 shares of Clark's Chocolate Creations Inc. (CCC). Their intent is to hold the investment for a temporary basis, likely less than one year. A) MMM pays $150,000 or $3 per share and gets a 12% investment in CCC on Jan 1/21 B) On July 1/21 CCC pays dividends of $1.20 per share in cash. 1 C) As of Dec 31/21 MMM's year-end, the fair value of the shares of CCC is now $4.00 per share. D) On Mar 15/22 MMM sells 1/2 of their shares (25,000 units) in CCC for $12 per share 15 in exchange for cash. 17 Required: 1 What type of investment is this and how would it be classified on the balance sheet? 20 Marks Available: 2 2 Create the necessary journal entries to record all of the above transactions, no descriptions are required. 23 Marks Available: 24

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