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How record cost method journal entry to record acquisition

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Reference no: EM132773242

On January 1, 2020, New Inc. buys 10% of Newer Co. (a private co., no mkt value of its shares) for $1,000,000 cash. For all of 2020, Newer's net income was $400,000. In 2020, Newer paid a $80,000 dividend to its shareholders.

Problem 1: Record the cost method journal entry to record the acquisition on Newer's books.

Reference no: EM132773242

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