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Question - On January 1, 2016, Bravo - Zulu Company purchased 10,000 shares of the stock of Rayco and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $90,000 and represents a 30% ownership stake. On December 31, 2016, Rayco made $25,000 of net income 2016 and paid dividends of $10,000.
Requirements -
Prepare the January 1 and December 31 general journal entries for Bravo - Zulu Company.
How much should the Bravo - Zulu Company report on the balance sheet for the investment in Rayco at the end of 2016?
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