Prepare the journal entries Que Corporation would make

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Question - On March 1, 20X7, Que Corporation acquired 16K shares out of 20K total outstanding shares of Mattle Company by issuing its own shares with fair market value of $420,000. On Aug 31, 20X8, Que Corp sold 5K out of the 16K shares for cash consideration of $70 per share (open market value). On Aug 31, 20X8, prior to sale, the shareholders equity of Mattle Co amounted to $600K and the unamortized purchase discrepancy was $70K. The investment was recorded using equity method. Prepare the journal entries Que Corporation would make to record the sale.

Reference no: EM133038317

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