Orleans Corporation purchased 1,000,000 shares of Creole Corporation's common stock, which constitutes 10% of Creole's voting stock on June 30, 2016 for $42 per share. Orleans' intent is to keep these shares beyond the current year. On December 20, 2016, Creole paid a $4,000,000 cash dividend. On December 31, 2016, Creole's stock was trading at $45 per share and their reported 2016 net income was $52 million.
Required:
A.Record the transaction to record the acquisition of Creole Corporation on June 30, 2016.
B.Record the transaction for the dividend received by Orleans on December 20, 2016.
C.Record any year-end entries needed by Orleans Corporation.

Question

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The Answer of Orleans Corporation purchased 1,000,000 shares of Creole Corporation's common stock, which constitutes 10% of Creole's voting stock on June 30, 2016 for $42 per share. Orleans' intent is to keep these shares beyond the current year. On December 20, 2016, Creole paid a $4,000,000 cash dividend. On December 31, 2016, Creole's stock was trading at $45 per share and their reported 2016 net income was $52 million.
Required:
A.Record the transaction to record the acquisition of Creole Corporation on June 30, 2016.
B.Record the transaction for the dividend received by Orleans on December 20, 2016.
C.Record any year-end entries needed by Orleans Corporation.

Orleans Corporation Purchased 1,000,000 Shares of Creole Corporation's Common Stock