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  3. on march 1, 20x8, current properties paid $1,000,0

On March 1, 20X8, Current Properties paid $1,000,000 for 25 percent of the shares of...

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Accounting

On March 1, 20X8, Current Properties paid $1,000,000 for 25 percent of the shares of Sealy Enterprises. Current exerts significant influence over Sealy.

a. Sealy reported earnings of $400,000 during 20X8. Record this journal entry for Current.

b. Sealy paid dividends of $50,000 during October 20X8. Record this journal entry for Current.

c. What amount would Current report on its balance sheet as investment in Sealy?

d. Sealy reported earnings of $440,000 during 20X9. Record this journal entry for Current.

e. Sealy paid dividends of $60,000 during October 20X9. Record this journal entry for Current.

f. On December 30, Current sells its entire investment in Sealy for $1,200,000. Record the journal entry.

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