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  3. on january 1,2023, mojito corporation purchased 20

On January 1,2023, Mojito Corporation purchased 20%(20,000 shares) of the outstanding stock of...

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Accounting

On January 1,2023, Mojito Corporation purchased 20%(20,000 shares) of the
outstanding stock of Dulcinea Corporation for $170,000. During 2023, Dulcinea
Corporation paid total dividends of $35,000 and earned $70,000 in net income. At the
end of 2023, Dulcinea Corporations stock had a fair market value of $165,000.
Required:
a. Prepare the journal entries that Mojito would make during 2023 assuming that they
do NOT have significant influence over Dulcinea as a result of their stock ownership
(i.e. fair value method).
b. Prepare the journal entries that Mojito would make during 2023 assuming that they
do have significant influence over Dulcinea as a result of their stock ownership (i.e.
equity method).
show in excel format

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