What is the journal entry made by company

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Reference no: EM131258317

A. On January 1, 2016, Company P purchases 100% of Company S voting stock for $800,000 cash, and Company P maintains Company S as a subsidiary. At the date of purchase, Company S reavealed the following: assets $900,000, liabilities $100,000, common stock, $300,000, and retained earnings $500,000. What is the journal entry made by Company P for purchase of Company S?

B. Based upon the information from A, what is Company P's journal entry if Company S reports 2016 net income of $80,000?

C. Based upon the information from A, what is Company P's journal entry if Company S paid dividends for 2016 of $60,000?

Reference no: EM131258317

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