Required information Skip to question [The following information applies to the questions displayed below.] As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 530,000 shares for $610,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $380,000 and distributed cash dividends of 30 cents per share. At year-end, the fair value of the shares is $648,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Required information
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[The following information applies to the questions displayed below.]
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 530,000 shares for $610,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $380,000 and distributed cash dividends of 30 cents per share. At year-end, the fair value of the shares is $648,000.
Required:
1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.
Note: If no entry is required for a transaction/event, select "No
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