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Equity Method On January 2, Yorkshire Company acquired 42% of the outstanding stock of Fain Company for $310,000. For the year ended December 31, Fain Company earned income of $81,000 and paid dividends of $25,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company. Jan. 2 - Purchase   fill in the blank 2         fill in the blank 4 Dec. 31 - Income   fill in the blank 6         fill in the blank 8 Dec. 31 - Dividends   fill in the blank 10         fill in the blank 12

Equity Method On January 2, Yorkshire Company acquired 42% of the outstanding stock of Fain Company for $310,000. For the year ended December 31, Fain Company earned income of $81,000 and paid dividends of $25,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company. Jan. 2 - Purchase   fill in the blank 2         fill in the blank 4 Dec. 31 - Income   fill in the blank 6         fill in the blank 8 Dec. 31 - Dividends   fill in the blank 10         fill in the blank 12

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Equity Method

On January 2, Yorkshire Company acquired 42% of the outstanding stock of Fain Company for $310,000. For the year ended December 31, Fain Company earned income of $81,000 and paid dividends of $25,000.

Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.

Jan. 2 - Purchase   fill in the blank 2  
      fill in the blank 4
Dec. 31 - Income   fill in the blank 6  
      fill in the blank 8
Dec. 31 - Dividends   fill in the blank 10  
      fill in the blank 12
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