Adams owns 80% of Williams and the carrying value of the investment on January 1, 2020 is $600,000. On that date Adams sells half of its shares for $250,000. What journal entry is recorded at that date. Same facts as above except that 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
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  1. Adams owns 80% of Williams and the carrying value of the investment on January 1, 2020 is $600,000. On that date Adams sells half of its shares for $250,000. What journal entry is recorded at that date.
  2. Same facts as above except that Adams sells 20% of its investment for $150,000, reducing its ownership to 60%. What journal entry is recorded by Williams at that date.
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