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Question - Bramble Corporation purchased 1,500 common shares of Nolan Inc. common stock for $15,500 (Bramble does not have significant influence). During the year, Nolan paid a cash dividend of $4.35 per share. At year end, Nolan stock was selling for $35.65 per share.
Required -
1. Prepare Bramble's journal entry to record the purchase of the investment.
2. Prepare Bramble's journal entry to record the dividends received.
3. Prepare Bramble's journal entry to record the fair value adjustment (Assume a zero balance in the Fair Value Adjustment account.).
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