, 2022, Wayne Corporation acquired 55,000 common shares of Garth Company for $30 each. At the time, Garth had 687,500 com
, 2022, Wayne Corporation acquired 55,000 common shares of Garth Company for $30 each. At the time, Garth had 687,500 com
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2022, Wayne Corporation acquired 55,000 common shares of Garth Company for $30 each. At the time, Garth had 687,500 common shares outstanding. The investment was classified as FV-NI. During 2022, Garth reported net income of $800,000 and did not declare or pay dividends. At the end of 2022, the fair value of Garth’s shares was $35 per share.
REQUIRED:
Prepare Wayne Corporation’s journal entries for the investment in Garth for the 2022 fiscal year.
Please don't give image based answer..thanku
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