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Handley Ltd. acquired 42% of the common shares of Lecce Ltd. on January 1,2024, by...

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Accounting

Handley Ltd. acquired 42% of the common shares of Lecce Ltd. on January 1,2024, by paying $5.68 million for 142,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that Handley received on March 20, June 20, September 20, and December 20. Lecce reported a net income of $1.42 million for the year. On December 31, the market price of the Lecce shares was $44 per share.
Prepare the journal entries for Handley for 2024, assuming Handley can not exercise significant influence over Lecce and uses the fair value through the profit or loss model. The intention is to hold the investment for the long term.
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