Create journal entry necessary to account for mjr investment

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Point 1: CMC, Inc., purchased 10% of MJR Enterprises for $1,000,000 on January 1, 2018. MJR recognized a total of $400,000 net income during 2018, paid $30,000 of dividends to CMC during 2018, and at December 31, 2018, the market value of the MJR investment increased to $1,040,000. Prepare the journal entries necessary to account for the MJR investment, assuming that CMC lacks significant influence.

Question 1: Create the journal entries necessary to account for the MJR investment, assuming that CMC has significant influence over the operating and financial policies of the investee.

Reference no: EM132497195

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