Reference no: EM132826436

Question - On January 1, 2015, SouthCo, bought 25% of the outstanding common shares of Courtland Corp. for $266,000 cash and has the ability to significantly influence Courtland Corp.'s financial and operating policies. At the date of acquisition of the shares, Courtland Corp.'s net assets had a fair value of $744,000. Their carrying value was $520,000. The difference was attributable to the fair value of Courtland Corp.'s buildings and its land exceeding carrying value, each accounting for one half of the difference. Courtland Corp.'s net income for the year ended December 31, 2015, was $250,000. During 2015, Courtland Corp. declared and paid cash dividends of $36,000. The buildings have a remaining life of 10 years. SouthCo follows IFRS.

Make all appropriate journal entries related to the investment during 2015, assuming SouthCo accounts for this investment by the equity method. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places.