Question 3 On January 1, 2023, your company acquires 10,000 shares of Investee Business Limited (IBL), representing 41% of the shares of IBL, for $202,000. As part of that investment, your company is entitled to appoint one director to the four-member Board of Directors. For the year ended December 31, 2023, IBL earns $400,000 of profit (net income) and no other comprehensive income. Also, on December 31, 2023, IBL declares and pays a dividend of $88,000 to all shareholders.

 REQUIRED 

1. Prepare journal entries for the following dates:

 (a) January 1, 2023; and (b) December 31, 2023. 

2. What should be the ending balance of the Investment in IBL account on the balance sheet as of January 1, 2024?

Answer rating: 100% (QA)

Answer Journal Entries January 1 2023 Debit Investment in IBL asset account ... View the full answer