Prepare the necessary four journal entries for arlenicomex

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Reference no: EM133344940

Question: Arlenicomex Inc. purchases 25% of Olivern Inc. and exercises significant influence by purchasing 20,000 shares of Olivern @ $10.00 per share on January 1, 2020.

For the year ended December 31, 2020 Olivern reports a net income of $100,000. On February 1, 2021 Olivern declared and paid a total cash dividend of $30,000. For the year ended December 31, 2021 Olivern reports a net loss of $25,000.

Required: Prepare the necessary four journal entries for Arlenicomex Inc., using the equity method. (Leave an empty line between each journal entry).

Reference no: EM133344940

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