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Path Company Has Decided to Distribute Shares It Owns in Trail

Question 90

Essay

Path Company has decided to distribute shares it owns in Trail Ltd as a dividend to its shareholders.The investment in Trail is recorded in Path's books at a value of $2,500,000.On the date of declaration they had a market value of $3,125,000.
Required:
Prepare all the journal entries to record the declaration and payment of the dividend.

Correct Answer:

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