Prepare the journal entries that Dragon would make

Reference no: EM132656064

Question - Dragon Corporation acquired a 15% (15,000 shares) interest in the outstanding shares of Slayer Inc. on January 1, 2015 at a cost of $200,000. Dragon Corporation was a public company and comply with the Accounting Standards for public enterprises. Slayer reported net income and made dividend payments to its shareholders as noted below.

Year	Income	Dividends
2015	50,000	20,000
2016	(15,000)	20,000
2017	(40,000)	20,000

The market price of Slayer's shares on December 31 are $16, $17 and $17 for 2015, 2016 and 2017 respectively.

Required - Prepare the journal entries that Dragon would make in each year using the appropriate accounting method.

Reference no: EM132656064

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