PR 15-2A Entries for Equity Investment of between 20%-50% Ownership OBJ. 2 Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 20Y6. The following transactions relate to securities acquired Forte Inc., which has a fiscal year ending on December 31, 20Y6: Jan. 10. Dec. 31. Purchased an influential interest in Imboden Inc. for $720,000 by purchasing 96,000 shares directly from the estate of the founder of Imboden Inc. There are 300,000 shares of Imboden Inc. stock outstanding. Received $57,600 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $450,000 in 20Y6. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc.
PR 15-2A Entries for Equity Investment of between 20%-50% Ownership OBJ. 2 Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 20Y6. The following transactions relate to securities acquired Forte Inc., which has a fiscal year ending on December 31, 20Y6: Jan. 10. Dec. 31. Purchased an influential interest in Imboden Inc. for $720,000 by purchasing 96,000 shares directly from the estate of the founder of Imboden Inc. There are 300,000 shares of Imboden Inc. stock outstanding. Received $57,600 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $450,000 in 20Y6. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PR 15-2A Entries for Equity Investment of between 20%-50%
Ownership
OBJ. 2
Forte Inc. produces and sells theater set designs and costumes. The company began
operations on January 1, 20Y6. The following transactions relate to securities acquired by
Forte Inc., which has a fiscal year ending on December 31, 20Y6:
Jan. 10.
Dec.
31.
Purchased an influential interest in Imboden Inc. for $720,000
by purchasing 96,000 shares directly from the estate of the
founder of Imboden Inc. There are 300,000 shares of Imboden
Inc. stock outstanding.
Received $57,600 of cash dividends on Imboden Inc. stock.
Imboden Inc. reported net income of $450,000 in 20Y6. Forte
Inc. uses the equity method of accounting for its investment in
Imboden Inc.
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