The following investment activities relate to Parade Corp. Parade has a December 31 year end. Year...
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The following investment activities relate to Parade Corp. Parade has a December 31 year end. Year 1: January 2 December 31 December 31 Year 2: March 5 Parade Corp. paid $5,000,000 cash to acquire 400,000 shares of stock in Band Inc.; these shares represent 40% of Band Inc.'s total outstanding stock. Band Inc. earned $800,000 in net income for Year 1. Band Inc. declared and paid $500,000 in dividends for Year 1. Parade sold all 400,000 shares of the Band Inc. stock for $20 per share For Year 1, prepare any journal and adjusting entries related to the investment in Band Inc. The following investment activities relate to Parade Corp. Parade has a December 31 year end. Year 1: January 2 December 31 December 31 Year 2: March 5 Parade Corp. paid $5,000,000 cash to acquire 400,000 shares of stock in Band Inc.; these shares represent 40% of Band Inc.'s total outstanding stock. Band Inc. earned $800,000 in net income for Year 1. Band Inc. declared and paid $500,000 in dividends for Year 1. Parade sold all 400,000 shares of the Band Inc. stock for $20 per share For Year 1, prepare any journal and adjusting entries related to the investment in Band Inc.
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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