Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (journal entries for fair value and equity methods

(Journal Entries for Fair Value and Equity Methods) The following are independent situations. Situation 1:...

70.2K

Verified Solution

Question

Accounting

(Journal Entries for Fair Value and Equity Methods) The following are independent situations.

Situation 1: Conchita Cosmetics acquired 10% of the 200,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2025. On June 30, Martinez declared and paid $75,000 cash dividends to all stockholders. On December 31, Martinez reported net income of $122,000 for the year. At December 31, the market price of Martinez Fashion was $15 per share.

Situation 2: Monica, Inc. obtained significant influence over Seles Corporation by buying 30% of Seless 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2025. On June 15, Seles declared and paid cash dividends of $36,000 to all stockholders. On December 31, Seles reported a net income of $85,000 for the year.

Instructions

Prepare all necessary journal entries in 2025 for both situations.

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

Medical Sciences
1.2K views

What would change if the lungs did not produce Angiotensin-Converting Enzyme? What is/are the differences between the...

Chemistry
1.2K views

As a technician in a large pharmaceutical research firm, you need to produce 450. mL of...

Physics
1.2K views

Which has more resistance when plugged into 120 V line a 1400 W microwave oven...

Physics
1.2K views

com lifts Jerry weighing 1 2 N into the air so that he can reach...

Calculus
1.2K views

A factory is to be built on a lot measuring 240 ft by 320 ft...

Calculus
1.2K views

Prove that lim (5x-3)= 7, using the e-8 definition.

Algebra
1.2K views

a cc Graphs of the Cosine and Sine Functions b O BY NC SA IT...

Accounting
1.2K views

Delta Diamonds uses a periodic inventory sistem. The company had five one- carat diamonds available...

Accounting
1.2K views

Audit concerns and implications on risk assessment are two important factors that must be addressed...

Accounting
1.2K views

****** Scenario 1: R&D Tax Credit (Research & Development) A...

Accounting
1.2K views

Chap 11 Probs 28 & 29 G Help Save & Exit Submit Saved Check my...

Accounting
1.2K views

As this question was flagged for not being complete before, I will bold the questions...