Prepare the journal entries of Tiger related to its share

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Problem - On January 1, 2019, Tiger Company purchased 6,720 shares of Eagle Corporation's common stock when Eagle had 22,400 shares outstanding. On that date, the following information pertained to Eagle:

Balance Sheet

 

Book Value

Fair Value

Depreciable assets (remaining life, 8 years)

$600,000

$620,000

Other non-depreciable assets

290,000

300,000

Total

$890,000

$920,000

Liabilities

$300,000

$330,000

Shareholders' equity

590,000


Total

$890,000


During 2019, Eagle earned net income of $120,000 and paid total dividends of $48,000. Prepare the journal entries of Tiger related to its share of Eagle's net income and dividends in 2019.

Reference no: EM132887795

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