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  3. on january 4. year 1, barber company purchased 5,5

On January 4. Year 1, Barber Company purchased 5,500 shares of Convell Company for $67,200...

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Accounting

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On January 4. Year 1, Barber Company purchased 5,500 shares of Convell Company for $67,200 Convell Company has a total of 27,500 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.75 per share, and its net income was $75,000 and $70,000 for Year 1 and Year 2, respectively. The January 2, Year 3, entry to record Barber's sale of 3,300 shares of Convell Company stock, which represents 60% of Barber's total investment, for $44,550 cash, should be Multiple Choice Debit Cash $44,550, credit Gain on Sale of Stock investment $8.250 credit Equity Method Investments $52.800 Debt Cash $44.550, debit Loss on Sale of Stock investment 54.230 credit Equity Method investments 540,320 Prey 1 cf 19 Next >

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