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Wildhorse Daniel Inc acquired 20% of the outstanding common stock of Theresa Blossom Inc. on...

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Accounting

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Wildhorse Daniel Inc acquired 20% of the outstanding common stock of Theresa Blossom Inc. on December 31, 2025. The purchase price was $1,178,400 for 49,100 shares. Blossom Inc. declared and paid an $0.90 per share cash dividend on June 30 and on December 31,2026. Blossom reported net income of $702,000 for 2026. The fair value of Blossom's stock was $27 per share at December 31, 2026. Assume that the security is a trading security. (a) Prepare the journal entries for Wildhorse Daniel lnc. for 2025 and 2026, assuming that Daniel cannot exercise significant influence over Blossom, (List all debit entries before credit entries. Credit account titles are outomatically indented when amount is entered, Do not indent monwally, if no entry is required, select " No Entry" for the occount titles and enter Ofor the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

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