Xavier Company owns 45% of the voting stock of Yellig Corporation, and reports the investment using the equity method. The investment balance is currently $50,000,000, but its fair value is $80,000,000. Xavier pays $100,000,000 in cash to acquire the remainder of Yellig's stock.
Required
Prepare the journal entries to record acquisition of the remaining 55% interest.

Question

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The Answer of Xavier Company owns 45% of the voting stock of Yellig Corporation, and reports the investment using the equity method. The investment balance is currently $50,000,000, but its fair value is $80,000,000. Xavier pays $100,000,000 in cash to acquire the remainder of Yellig's stock.
Required
Prepare the journal entries to record acquisition of the remaining 55% interest.

Xavier Company Owns 45% of the Voting Stock of Yellig