Hamilton Ltd. was organized on January 2, 2017. The followinginvestment transactions and events occurred during the followingmonths:
| 2017 | | |
| Jan. | 6 | | Hamilton paid $575,500 for 50,000 shares (20%) of Wong Inc.outstanding common shares. |
| Apr. | 30 | | Wong declared and paid a cash dividend of $1.10 per share. |
| Dec. | 31 | | Wong announced that its profit for 2017 was $480,000. Fairvalue of the shares was $11.80 per share. |
| 2018 | | |
| Oct. | 15 | | Wong declared and paid a cash dividend of $0.70 per share. |
| Dec. | 31 | | Wong announced that its profit for 2018 was $630,000. Fairvalue of the shares was $12.18 per share. |
| 2019 | | |
| Jan. | 5 | | Hamilton sold all of its investment in Wong for $682,000cash. |
Assume that Hamilton has a significant influence over Wong with its20% share.
Required:
1. Prepare the entries to record the precedingtransactions in Hamilton’s books. (If no entry is requiredfor a transaction/event, select "No journal entry required" in thefirst account field.)
2. Calculate the carrying value per share ofHamilton’s investment as reflected in the investment account onJanuary 4, 2019. (Round your answer to 2 decimalplaces.)
3. Calculate the change in Hamilton’s equity fromJanuary 2, 2017, through January 5, 2019, resulting from itsinvestment in Wong.
