Discuss the various rarer errors in performance management. Discuss the various

Question

Discuss the various rarer errors in performance management. Discuss the various rarer errors in performance management. Presented below are two independent situations: (a) Sunland Inc. acquired 10% of the 418,000 shares of common stock of Schuberger Corporation at a total cost of $11 per share on June 17, 2020. On September 3, Schuberger declared and paid a $118,000 dividend. On December 31, Schuberger reported net income of $518,000 for the year. Oriole Corporation obtained significant influence over Hunsaker Company by buying 30% of Hunsaker's 118,000 outstanding shares of common stock at a cost of $19 per share on January 1, 2020. On May 15, Hunsaker declared and paid a cash dividend of $118,000. On December 31, Hunsaker reported net income of $218,000 for the year.

Explanation / Answer

Solution a:

Solution b:

Journal Entries - Sunland Inc. Date Particulars Debit Credit 17-Jun-20 Equity Investment Dr (41800*$11) $459,800.00        To Cash $459,800.00 (To record investment in schuberger corporation) 3-Sep-20 Cash Dr ($118,000*10%) $11,800.00       To Dividend Revenue $11,800.00 (To record dividend received) 31-Dec-20 No Entry

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