Provide the journal entries on barbie books

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Reference no: EM132739589

On January 1, 2021, Barbie Company acquired 50,000 shares of Ken Corp Limited at $6 per share, representing 10% of Ken Corp's outstanding voting shares. On July 31, 2021, Ken Corp declared and paid a dividend of $1 per share. Ken Corp's net income for 2021 was $2,500,000. On December 31, 2021, the shares of Ken Corp were trading on the Toronto Stock Exchange at $12 per share.

Requirement:

Problem 1: Provide the journal entries on Barbie's books relating to its investment in Ken Corp, assuming that Barbie classifies Ken Corp Fair Value through Net income. Show your calculations

Reference no: EM132739589

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