Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bright corp purchased 10% outstanding shares of da

Bright Corp purchased 10% outstanding shares of Dark Corp's common stock for $600,000 on January...

50.1K

Verified Solution

Question

Accounting

image
Bright Corp purchased 10% outstanding shares of Dark Corp's common stock for $600,000 on January 2, 2018. At the end of 2018, Dark declared dividends of $100,000 in total, reported total earnings for the year of $400,000. The fair value of the shares is $500,000. On February 10, 2019, Bright purchased 10% outstanding shares of Neutral Corp's common stock for $500,000. In 2019, neither Dark nor Neutral declared or paid dividend. At the end of 2019, Dark reported total earnings for the year of $400,000 and Neutral reported total earnings for the year of $200,000. The fair value of the Dark shares is $400,000. The fair value of Neutral share is $800,000. 1) Prepare the journal entry to record Bright's purchase of Dark's shares. Put your JE in the first box. 2) Prepare the journal entries at the end of 2018 (Hint: 2 journal entries). Put your JE in the second box. 3) Prepare the journal entry to record Bright's purchase of Neutral's shares. Put your JE in the third box. 4) Prepare the journal entries at the end of 2019. Put your JE in the fourth box

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students