Prepare dated journal entries for the investment

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Reference no: EM133492745

Question: On may 1, 2020, clarke inc. acquired 1,250 shares of mayson ltd. for $75,000. this investment represents a 16% interest in mayson ltd. clarke inc. has classified this investment as FVTLP. On december 31, 2020, mayson ltd paid a $35,000 dividend to its shareholders. on april 30, 2021, mayson ltd's shares were valued at $30 per share, and mayson ltd. reported a net loss of $27,000 for the year. on june 15, 2021, clarke inc sold the shares for $37,000. both clarke inc and mayson ltd have april 30, 2021, year-ends. required: prepare dated journal entries for the investment on the acquiring company's books from acquisition to disposal. ignore income taxes. journal entry descriptions are optional.

Reference no: EM133492745

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