Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 12-15 (algo) equity investments; fair val

Exercise 12-15 (Algo) Equity investments; fair value through net income [LO12-5] On March 31, 2024,...

60.1K

Verified Solution

Question

Accounting

image

Exercise 12-15 (Algo) Equity investments; fair value through net income [LO12-5] On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $55.4 million. KT's net income for the year ended December 31,2024 , was $81.8 million. The fair value of the shares held by Chow was $38.6 million at December 31 , 2024. KT did not declare or pay a dividend during 2024. Required: 1. Prepare all appropriate journal entries related to the investment during 2024. 2. Assume that Chow sold the stock on January 20,2025 , for $31.8 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Prepare all appropriate journal entries related to the investment during 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5 ). Journal entry worksheet Record the purchase of KT Manufacturing's capital stock for $55.4 million. Note: Enter debits before credits

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

Finance
1.2K views

What are flotation costs and why they must be included in the initial cost of a...

Basic Math
1.2K views

A sample of 150 individuals (males and females) was surveyed, and the individuals were asked to...

Physics
1.2K views

In the figure shown find the accelerations of blocks A B and C immediately after...

Basic Math
1.2K views

What is the image point of (2, 9) after thetransformation T-1,-4 ry=x ?

Basic Math
1.2K views

Which equation represents a line that passes throughthe point (-2, 1) and has a slope...

Basic Math
1.2K views

Let f(x) = (x - 3)Find a domain on which f is one-to-one and non-decreasing.Find...

Basic Math
1.2K views

Miss Crawford wants to buy a new car. She is considering elther a hybrid or...

Statistics
1.2K views

18 Find the indicated IQ score The graph depicts IQ scores of adults and those...

Statistics
1.2K views

Distributions A and B below which of the following statements are true Select All correct...

Accounting
1.2K views

Magic Company adds materials at the beginning of the process in Department A. The following...

Accounting
1.2K views

Using the categories of liquidity, profitability and operations management describe which ratios would be used...

Accounting
1.2K views

to praiti I acie or A,3 acres of B, and no acres of C of...