Acme in pruchased 50000 shares of takedown enterprises on

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Acme in pruchased 50,000 shares of takedown enterprises on January 1,2000. The total purchase price was 4,300,000. Takemedown reported a net income of 1,800,000 for the year eneded 12/31/00. Gobblemeup recieved a dividend of 43,000 from Able on April 1, 2000.

Journalize the required entries for the preceeding transactions if gobblemeup planned on holding the stock for more than one year and:

a) The percentage of ownership was 30%

b) the percentage of ownership was 15%

c) the investment was planned for 6 months and represented a 10% ownership

d) would the reporting be different if gobblemeup owned 60% of takmedown? How would it be reported? brifely explain?

Reference no: EM13568843

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