2. On January 1 Criquet Co. acquired an interest in the Tamlee Co. for $500,000. At...

2. On January 1 Criquet Co. acquired an interest in the Tamlee Co. for $500,000. At December 31, Tamlee Co. declared and paid a cash dividend of $50,000 and reported a net income of $160,000. REQUIRED: Prepare the journal entries for the Criquet Co. under each of the independent circumstances:

a. Criquet Co. acquires a 10% interest in the Tamlee Co.

b. Criquet Co. acquires a 25% interest in the Tamlee Co.

Expert Solution

ekkarill92 answered 2 years ago

On January 1 Criquet Co. acquired an interest in the Tamlee Co. for $500,000. At December...

On January 1 Criquet Co. acquired an interest in the Tamlee Co. for $500,000. At December 31, Tamlee Co. declared and paid a cash dividend of $50,000 and reported a net income of $160,000. REQUIRED: Prepare the journal entries for the Criquet Co. under each of the independent circumstances: a. Criquet Co. acquires a 10% interest in the Tamlee Co. b. Criquet Co. acquires a 25% interest in the Tamlee Co.

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