On January 1, 2017, Vancouver Corporation paid $400,000 to purchase 40% of the outstanding voting stock of Montreal Corporation. The equity method is used to account for the investment. The following data relate to this investment.2017∙ Dividends received from Montreal Corporation amounted to $20,000.∙ Net income reported by Montreal Corporation was $200,000.∙ Current market value of Montreal Corporation investment on December 31, 2017, was $700,000.2018∙ Dividends received from Montreal Corporation amounted to $30,000.∙ Net income reported by Montreal Corporation was $300,000.∙ Current market value of English Court Corporation investment on December 31, 2018, was $860,000.∙ The investment was sold on December 31, 2017, for $830,000.Prepare all journal entries for 2017 and 2018 relating to Vancouver Corporation's investment in Montreal Corporation.

On January 1, 2017, Vancouver Corporation paid $400,000 to purchase 40% of the outstanding voting stock of Montreal Corporation. The equity method is used to account for the investment. The following data relate to this investment.2017∙ Dividends received from Montreal Corporation amounted to $20,000.∙ Net income reported by Montreal Corporation was $200,000.∙ Current market value of Montreal Corporation investment on December 31, 2017, was $700,000.2018∙ Dividends received from Montreal Corporation amounted to $30,000.∙ Net income reported by Montreal Corporation was $300,000.∙ Current market value of English Court Corporation investment on December 31, 2018, was $860,000.∙ The investment was sold on December 31, 2017, for $830,000.Prepare all journal entries for 2017 and 2018 relating to Vancouver Corporation's investment in Montreal Corporation.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 13E

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