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Record the journal entry for Dairfax purchase

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Reference no: EM133057200

Question - On October 1, 2020, Dairfax Financial Holdings made a bid to take-over Blueberry. The price of Blueberry shares at that point in time was $8. Due to insufficient capital, the deal did not close. On December 31, 2020, Dairfax instead chose to purchase 20% of the company at fair market value.

Blueberry information as of December 31, 2020

- Share price: $12

- # of shares outstanding: 560,000,000

Required - Using the equity method, record the journal entry for Dairfax's purchase on December 31, 2020.

Reference no: EM133057200

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