Reference no: EM132576088
Question - The Hien Company engaged in the following investment transactions during 2020
Date Transaction
02/01 Bought 40,000 of the 100,000 outstanding shares of the A corporation for $400,000 as trading securities. Goodwill of $100,000 was included in the price.
03/01 Purchased 1,000 ordinary shares of the B corporation for $15 per share
04/01 The A corporation reported first quarter profits of $15,000
05/01 Received a $1.5 per share dividend on the shares for the B corporation.
07/01 Purchased 1,000 ordinary shares of the C company for $20 per share those are classified as AFS
12/31 The share price for the B corporation is $20, and $15 for the C corporation
Required - Write journal entry.