n January 1, Puckett Company paid $1.28 million for 64,000 shares of Harrison’s voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $2 per share during the year and reported net income of $569,000. What is the balance in the Investment in Harrison account found in Puckett’s financial records as of December 31? What I have: Equity Investment 1.28 million Cash 1.28 million Equity Invetment 227600 Equity income 227600 Not sure how to record the $2 per dividend? What is the balance in the Investment in Harrison account found in Puckett’s financial records as of December 31?
n January 1, Puckett Company paid $1.28 million for 64,000 shares of Harrison’s voting common stock, which represents a 40 percent investment. No allocation to
What I have:
Equity Investment 1.28 million
Cash 1.28 million
Equity Invetment 227600
Equity income 227600
Not sure how to record the $2 per dividend? What is the balance in the Investment in Harrison account found in Puckett’s financial records as of December 31?
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