Jones Corporation purchases $500,000 of Basic Corporation's stock on October 1,2020 at cost.Jones owns less than 2% of Basic's outstanding shares,and thus has insignificant influence.On December 1,2020 Jones Corporation received a cash dividend of $15,000 on the Basic Corporation's stock.On December 31,2020,Jones Corporation's investment in Basic Corporation has a fair value of $550,000.
Required:
Prepare the necessary journal entries.Explanations are not required.
Correct Answer:
Verified
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