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Question - On January 2, 2018, Alpaca Company purchased 15,000 shares of the stock of Zebra Company, and did not obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $12 per share, and represents a 10% ownership stake. Zebra Company made $55,000 of net income in 2018, and paid dividends of 50 cents per share on December 15, 2017. On December 31, 2017, Zebra Company's stock was trading on the open market for $15 per share at the end of the year. Use this information to prepare the General Journal entry(ies) (without explanation) for January 2 purchase and the December 15 & 31, 2018 record of income & gain/loss. If no entry is required then write "No Entry Required."
a contingent liability is an obligation that depends on the occurrence of a future event and that should be recorded in
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