Donald Corporation purchased 3,000 shares of the outstanding common voting stock of Apprentice Corporation on January 2, 2016, for $80 per share. At the date of purchase Apprentice Corporation had outstanding 10,000 shares of common stock with a par value of $50 per share. During 2016, Apprentice reported net income of $60,000 and declared and paid a $5,000 cash dividend. The December 31, 2016, fair value of Apprentice's stock was $84.
Required:
Prepare the journal entries required for Donald Corporation on January 2, 2016 and December 31, 2016.

Question

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The Answer of Donald Corporation purchased 3,000 shares of the outstanding common voting stock of Apprentice Corporation on January 2, 2016, for $80 per share. At the date of purchase Apprentice Corporation had outstanding 10,000 shares of common stock with a par value of $50 per share. During 2016, Apprentice reported net income of $60,000 and declared and paid a $5,000 cash dividend. The December 31, 2016, fair value of Apprentice's stock was $84.
Required:
Prepare the journal entries required for Donald Corporation on January 2, 2016 and December 31, 2016.

Donald Corporation Purchased 3,000 Shares of the Outstanding Common Voting