The journal entry required the events assuming that Newman uses the equity method to account for its investment in Multigram. Giveninformation: N Company acquired a 30% interest in common shares of M Company Cost of acquisition is $4,295,000. M Company reported a net loss of $ 630,000 and paid no dividends.

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Chapter 16, Problem 16.7BE

To determine

To prepare: The journal entry required the events assuming that Newman uses the equity method to account for its investment in Multigram.

Giveninformation:

N Company acquired a 30% interest in common shares of M Company

Cost of acquisition is $4,295,000.

M Company reported a net loss of $ 630,000 and paid no dividends.

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