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Problem 1: Assume that Carlos Corporation acquires 40% of the common stock of Tele Company for $160,000 on January 2019. Record the transaction.
Problem 2: In 2019, Tele Company reports net income of $100,000. It declares and pays a $60,000 cash dividends. Carlos records its shares of Tele's income and reductions in the investment account for the dividends received.
(a) Record the journal entry for Tele Company's net income and dividends.
(b) Post the T-accounts for the Stock Investments and Revenue from Stock Investments accounts from problem
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