On December 31,Year 1,Condax Corp purchased 8,000 shares of Opentech Corp's common shares.This purchase represented 35% of Opentech's outstanding shares and gave Condax significant influence over Opentech's management and operations.On October 11,Year 2,Opentech declared and paid cash dividends of $30,000.On December 31,Year 2,Opentech reported profit of $190,000 for the year.Prepare the Year 2 journal entries Condax Corp should prepare to account for its investment in Opentech Corp.

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The Answer of On December 31,Year 1,Condax Corp purchased 8,000 shares of Opentech Corp's common shares.This purchase represented 35% of Opentech's outstanding shares and gave Condax significant influence over Opentech's management and operations.On October 11,Year 2,Opentech declared and paid cash dividends of $30,000.On December 31,Year 2,Opentech reported profit of $190,000 for the year.Prepare the Year 2 journal entries Condax Corp should prepare to account for its investment in Opentech Corp.

On December 31,Year 1,Condax Corp Purchased 8,000 Shares of Opentech