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m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take;&inprogress-false; Calculator On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000. For the year ending December 31, McGuire earned income of $48,000 and paid dividends of $14,000. Required Prepare the entries for Todd Company for the purchase of the stock, share of McGuire income, and dividends received from McGuire, Jan. 2 Dec. 31 Dec. 31

Explanation / Answer

Jan-02 Investment in stock 205000            Cash 205000 Dec-31 Investment in stock 19200 =48000*40%        Revenue from investment 19200 Dec-31 Cash 5600 =14000*40%        Investment in stock 5600

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