Coronado Inc acquired 122,000 common shares, which is 25% of the outstanding common shares, of...
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Coronado Inc acquired 122,000 common shares, which is 25% of the outstanding common shares, of Tahiti Ltd. on January 1, 2017 for $774,700. At the time of purchase, Tahiti Ltd. depreciable assets were undervalued by $39,240. The depreciable assets had a remaining useful life of 9 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.33 per share on July 31, 2017. Tahiti Ltd. reported $1.2 million as net income on December 31, 2017 for the year ending on this date. Assuming that Coronado Inc. is in a position to exercise significant influence over Tahiti Ltd, and that Coronado follows IFRS.
?Prepare all the journal entries for 2017 in the books of Coronado Inc. relating to above transactions
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