Smith Corporation purchases $620,000 of TMI Corporation's stock on October 18,2020 at cost.Smith owns less than 2% of TMI's outstanding shares,and thus has insignificant influence.On December 1,2020,Smith Corporation received a cash dividend of $12,000 on the TMI Corporation's stock.On December 31,2020,Smith Corporation's investment in TMI Corporation has a fair value of $600,000.
Required:
Prepare the necessary journal entries.Explanations are not required.

Question

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The Answer of Smith Corporation purchases $620,000 of TMI Corporation's stock on October 18,2020 at cost.Smith owns less than 2% of TMI's outstanding shares,and thus has insignificant influence.On December 1,2020,Smith Corporation received a cash dividend of $12,000 on the TMI Corporation's stock.On December 31,2020,Smith Corporation's investment in TMI Corporation has a fair value of $600,000.
Required:
Prepare the necessary journal entries.Explanations are not required.

Smith Corporation Purchases $620,000 of TMI Corporation's Stock on October