I need this question answered in under 30 minutes please. On January 1, 2020, Bactin Corporation acquired 10% of Oakton Company for $100,000. On that date, the total book value and fair value of Oakton's identifiable net assets was $900,000. Any difference between cost and fair value is attributable to goodwill. In 2020, Oakton reported net income of $60,000 and paid dividends of $30,000. On January 1, 2021, Bactin Corporation bought another 10% of Oakton for $100,000, and on that date, the book value and fair value of Oakton's net assets still was $900,000 (the fair value of Oakton did not change during 2020). Bactin concluded that its 20% ownership now allowed it to significantly influence Oakton’s operations. In 2021, Oakton reported net income of $80,000 and paid dividends of $40,000. Required: Prepare all journal entries for Bactin for 2020 and 2021, assuming no change in fair value of the Oakton stock during that time period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
I need this question answered in under 30 minutes please.
On January 1, 2020, Bactin Corporation acquired 10% of Oakton Company for $100,000. On that date, the total book value and fair value of Oakton's identifiable net assets was $900,000. Any difference between cost and fair value is attributable to
Required:
Prepare all journal entries for Bactin for 2020 and 2021, assuming no change in fair value of the Oakton stock during that time period. (If no entry is required for a transaction/event, select "No
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