Question: Using the information from Exercise 16-6, calculate the balance in the Investment in Minecraft Ltd. Common Shares account. Assume that after all the above transactions

Using the information from Exercise 16-6, calculate the balance in the Investment in Minecraft Ltd. Common Shares account. Assume that after all the above transactions took place, Kinross sold its entire investment in Minecraft Ltd. common shares for $13,100,000 cash. Journalize the sale of the investment. Disregard commissions on sale.

Data From Exercise 16-6

Kinross Gold Corp., introduced in the chapter-opening story, owns equity-method investments in several companies. Suppose Kinross paid $12,000,000 to acquire a 40-percent investment in Minecraft Ltd. Further, assume Minecraft Ltd. reported net income of $1,780,000 for the first year and declared and paid cash dividends of $650,000. Record the following entries in Kinross’s general journal: (a) purchase of the investment, (b) Kinross’s proportion of Minecraft Ltd.’s net income, and (c) receipt of the cash dividends. Disregard commissions on the purchase.

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