How much should the post company report on the balance sheet

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Question - On January 1, 2019, Post Company purchased 40,000 shares of the stock of Malone Co, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $300,000, and represents a 35% ownership stake. Malone made $100,000 of net income in 2019, and paid dividends of $30,000. The price of Malone's stock increased from $7.50 per share at the beginning of the year, to $10 per share at the end of the year.

Required -

a. Prepare the January 1 and December 31 general journal entries for Post Company.

b. How much should the Post Company report on the balance sheet for the investment in Malone at the end of 2019?

Reference no: EM132787745

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