Adams owns 80% of Williams and has a carrying value of the investment at January 1, 2020, of $600,000. On that date, Adams sells 20% of its investment for $150,000 reducing its ownership to 60%. What journal entry is recorded by Williams at that date

Adams owns 80% of Williams and has a carrying value of the investment at January 1, 2020, of $600,000. On that date, Adams sells 20% of its investment for $150,000 reducing its ownership to 60%. What journal entry is recorded by Williams at that date

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please include each step of calculation for my reference. Thanks a lot.
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k Robbins owns 40% of Smith and has a balance in its Investment Account of $200,000. On January 1, 2020 Robbins purchases an additional 20% of Smith for $150,000 cash. In addition to the entry, Dr. Investment 150,000 and Cr. Cash 150,000 what additional journal entry by Robbins is required. (hint: revalue the original 40% ownership interest of Robbins). O Dr. Investment $40,000. Cr. Gain on Revaluation of Investment $40,000 O Dr. Investment $40,000. Cr. Additional Paid in Capital. $40,000 esc Dr. Investment $100,000. Cr. Additional Paid in Capital $100,000 Dr. Investment $100,000 Cr. Gain on Revaluation of Investment. $100,000 ↳ Moving to the next question prevents changes to this answer. $180 ! 1 option A P N # 3 5088AAG 2 W S X H 25 command 20 E D $ 4 888 F4 C tv R F % Pages T V A MacBook Air G Y B & 7 H F7 Question 4 of 15 コ *00 8 N DII F8 J Ha Han Assi CON 201-0 h. T& 2)d FO M
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