Energy Direct Corp. acquired 32% of Edmonton Limited for $2,000,000 on January 1, 2015. During 2015, Edmonton Limited earned $480,000 and paid dividends of $225,000.
a. Prepare the journal entries required to record the acquisition, and the transactions during 2015.
b. Determine the carrying value on Energy Direct Corp. of the investment in Edmonton Limited as at December 31, 2015.

Question

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The Answer of Energy Direct Corp. acquired 32% of Edmonton Limited for $2,000,000 on January 1, 2015. During 2015, Edmonton Limited earned $480,000 and paid dividends of $225,000.
a. Prepare the journal entries required to record the acquisition, and the transactions during 2015.
b. Determine the carrying value on Energy Direct Corp. of the investment in Edmonton Limited as at December 31, 2015.