During 2016, Eagle earned net income of $120,000 and paid total dividends of $48,000. Required:...
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Accounting
During 2016, Eagle earned net income of $120,000 and paid total dividends of $48,000.
Required:
| Prepare the journal entries of Tiger related to its share of Eagles net income and dividends in 2016. |
On January 1, 2016, Tiger Company purchased 6,720 shares of Eagle Corporations common stock when Eagle had 22,400 shares outstanding. On that date, the following information pertained to Eagle:
| Eagle Corporation |
| Balance Sheet |
| January 1, 2016 |
| 1 |
| Book Value | Fair Value |
| 2 | Depreciable assets (remaining life, 8 years) | $600,000.00 | $620,000.00 |
| 3 | Other non-depreciable assets | 290,000.00 | 300,000.00 |
| 4 | Total | $890,000.00 | $920,000.00 |
| 5 | Liabilities | $300,000.00 | $330,000.00 |
| 6 | Shareholders equity | 590,000.00 |
|
| 7 | Total | $890,000.00 |
|
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