Prepare journal entries of runner company

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Reference no: EM132419004

Problem: On January 1, 2017, Runner Company pays $10 million for 40% of the outstanding common stock of a supplier called Jog, Inc. On December 1, 2017 Jog, Inc., declared and paid cash dividends of $100,000. For the year ending December 31, 2017, Jog, Inc. also reported net income of $1,000,000. At December 31, 2017, the fair value of 40% of Jog, Inc.'s stock was $9 million. On January 1, 2018, all the Jog, Inc.'s stock was sold for $9 million.

Required:

Question: Prepare journal entries on the following dates:

  1. January 1, 2017
  2. December 1, 2017
  3. December 31, 2017
  4. January 1, 2018

Reference no: EM132419004

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