On December 31,Year 1,Winnipeg Corp purchased 8,000 shares of Bittner Corp's common shares.This purchase represented 35% of Bittner's outstanding shares and gave Winnipeg significant influence over Bittner's management and operations.On October 11,Year 2,Bittner declared and paid cash dividends of $50,000.On December 31,Year 2,Bittner reported net income of $90,000 for the year.Prepare the Year 2 journal entries Winnipeg Corp should prepare to account for its investment in Bittner Corp.

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The Answer of On December 31,Year 1,Winnipeg Corp purchased 8,000 shares of Bittner Corp's common shares.This purchase represented 35% of Bittner's outstanding shares and gave Winnipeg significant influence over Bittner's management and operations.On October 11,Year 2,Bittner declared and paid cash dividends of $50,000.On December 31,Year 2,Bittner reported net income of $90,000 for the year.Prepare the Year 2 journal entries Winnipeg Corp should prepare to account for its investment in Bittner Corp.

On December 31,Year 1,Winnipeg Corp Purchased 8,000 Shares of Bittner