On January 1, 2012, Shane Corporation acquired 30 percent (13,000 shares) of Matthews Services Inc. common stock for $1,300,000 as a long-term investment. Data from Matthews's 2012 financial statements include the following:

The market value of Matthews Services Inc. common stock on December 31, 2012, was $98 per share. Shane does not have any other investments in securities.
Prepare the necessary journal entries for Shane's investment in Matthews Services Inc. common stock assuming Shane uses the following methods to account for its investment in Matthews Services:

Question

On January 1, 2012, Shane Corporation acquired 30 percent (13,000 shares) of Matthews Services Inc. common stock for $1,300,000 as a long-term investment. Data from Matthews's 2012 financial statements include the following:
 
The market value of Matthews Services Inc. common stock on December 31, 2012, was $98 per share. Shane does not have any other investments in securities.
Prepare the necessary journal entries for Shane's investment in Matthews Services Inc. common stock assuming Shane uses the following methods to account for its investment in Matthews Services:

Quizplus · Accepted Answer

The Answer of On January 1, 2012, Shane Corporation acquired 30 percent (13,000 shares) of Matthews Services Inc. common stock for $1,300,000 as a long-term investment. Data from Matthews's 2012 financial statements include the following:
 
The market value of Matthews Services Inc. common stock on December 31, 2012, was $98 per share. Shane does not have any other investments in securities.
Prepare the necessary journal entries for Shane's investment in Matthews Services Inc. common stock assuming Shane uses the following methods to account for its investment in Matthews Services:

On January 1, 2012, Shane Corporation Acquired 30 Percent (13,000