On January 1, Lance Corporation purchased a 40% equity in Sloan Company for $160,000. At December 31, Sloan declared and paid a $40,000 cash dividend and reported net income of $100,000.
Instructions
Prepare the necessary journal entries for Lance Corporation.

Question

Quizplus · Accepted Answer

The Answer of On January 1, Lance Corporation purchased a 40% equity in Sloan Company for $160,000. At December 31, Sloan declared and paid a $40,000 cash dividend and reported net income of $100,000.
Instructions
Prepare the necessary journal entries for Lance Corporation.

On January 1, Lance Corporation Purchased a 40% Equity in Sloan