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Mitchell Corporation pays $10 million to acquire a 30 percent interest in Turner Corporations stock...

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Accounting

Mitchell Corporation pays $10 million to acquire a 30 percent interest in Turner Corporations stock on January 1, 2020, and reports the investment using the equity method. Any basis difference is attributed to goodwill. During 2020, Turner reports net income of $1,000,000, which includes $50,000 in realized and unrealized gains on trading securities. Turner also reports $80,000 in unrealized losses on AFS securities in other comprehensive income, and pays dividends of $250,000 in 2020. Required Prepare Mitchells journal entries to record the above events for 2020

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