Savan Co.purchased 14,000 shares of Briton Corporation's 40,000 shares of common stock on December 31,2012.This represented 35% of Briton's outstanding shares and gave Savan Co.significant influence over Briton's management and operations.On October 11,2013,Briton declared and paid cash dividends of $30,000.On December 31,2013,Briton reported net income of $125,000 for the year.Prepare the journal entries Savan Co.should record to account for its investment in Briton Corporation during 2013.

Question

Quizplus · Accepted Answer

The Answer of Savan Co.purchased 14,000 shares of Briton Corporation's 40,000 shares of common stock on December 31,2012.This represented 35% of Briton's outstanding shares and gave Savan Co.significant influence over Briton's management and operations.On October 11,2013,Briton declared and paid cash dividends of $30,000.On December 31,2013,Briton reported net income of $125,000 for the year.Prepare the journal entries Savan Co.should record to account for its investment in Briton Corporation during 2013.

Savan CoPurchased 14,000 Shares of Briton Corporation's 40,000 Shares of Common