On October 1, 2016, Chicago Corp. purchases 1,000 shares of the preferred stock of Denver Corp. for $40 per share. Chicago pays another $1,000 in commissions. On October 20, 2016, Denver declares and pays dividends of $1 per share. Chicago sells the stock on November 5, 2016, at a price of $45 per share. Prepare all necessary journal entries on Chicago’s books in connection with its investment, beginning with the purchase of the preferred stock on October 1, 2016; the dividend received on October 20, 2016; and the sale on November 5, 2016.

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.