On January1,2018 Dexter Morgan Boats paid $1850000 for its 30% investment in James Doaks Autos. After...

On January1,2018 Dexter Morgan Boats paid $1850000 for its 30% investment in James Doaks Autos. After the purchase DMB has significant influence over JDA. JDA earned net income of$30000000 and paid cash dicidends of $ 15000000 to all outstanding stockholders during 2018. Assume all outstanding stock is voting stock.

1. Journalize all require 2018 transactions related to DMB investment in JDA. Omit explanations.

2. What is the December 31,2018 balance of the investment account?

Expert Solution

ekkarill92 answered 2 years ago

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