Prepare the necessary journal entries for sol inc

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Sol Inc., obtained significant influence over K Corp by acquiring 30% of K Corp's 100,000 outstanding ordinary shares at a total cost of $10 per share on January 1, 2020. On June 15, K Corp declared and paid a cash dividend of $50,000. On December 31, K Corp. reported a net income of $300,000 for the year.

Instructions

Problem 1: Prepare the necessary journal entries for 2020 for Sol Inc and compute the balance in the investment account in K Corp on December 31, 2020

Reference no: EM132905483

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