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Record Culver journal entries to record the purchase

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Reference no: EM132877632

Question - Culver Corporation has owned stock of Conrad Corporation since 2017. At December 31, 2020, its balances related to this investment were:

Equity Investments $194,000

Fair Value Adjustment (AFS) 37,000 Dr.

On January 1, 2021, Culver purchased additional stock of Melissa Company for $459,000 and now has significant influence over Conrad.

Record Culver's journal entries to record the purchase of the investment and the change to the equity method:

-To record the purchase of additional stock

-To reclassify current investment

-To eliminate accounts for change to equity method

Reference no: EM132877632

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