On January 1, 2017, Trevor bought 6% of Joseph Company's common stock for $20,000. During 2017, Joseph earned $6,000 of net income and distributed $4,400 of dividends. On January 1, 2018, Trevor bought an additional
35% of Joseph Company's common stock. The fair value of the Joseph shares owned by Trevor was $21,000 on December 31, 2017. The acquisition of the additional 35% of Joseph at the beginning of 2018 gave Trevor significant influence.
Required:
Prepare the appropriate entries for Trevor on January 1, 2018, as a result of the additional acquisition and change in ownership classification.

Question

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The Answer of On January 1, 2017, Trevor bought 6% of Joseph Company's common stock for $20,000. During 2017, Joseph earned $6,000 of net income and distributed $4,400 of dividends. On January 1, 2018, Trevor bought an additional
35% of Joseph Company's common stock. The fair value of the Joseph shares owned by Trevor was $21,000 on December 31, 2017. The acquisition of the additional 35% of Joseph at the beginning of 2018 gave Trevor significant influence.
Required:
Prepare the appropriate entries for Trevor on January 1, 2018, as a result of the additional acquisition and change in ownership classification.

On January 1, 2017, Trevor Bought 6% of Joseph Company's