Johannes Inc. acquired percent of Corner Brook Ltd common shares on January Year for $ At that date, the falr value
of the noncontrolling interest was $ Corner Brook's balance sheet contained the following amounts at the time of the
combination:
During each of the next three years, Corner Brook reported net income of $ and paid dividends of $ On January Year
Johannes sold of the Corner Brook shares for $ In cash. Johannes used the equity method in accounting for Its
ownership of Corner Brook.
Required:
a Compute the balance in the investment account reported by Johannes on January Year before its sale of shares. Omlt $ sign
In your response.
Balance prior to sale of shares
b Prepare the entry recorded by Johannes when It sold the Corner Brook shares. If no entry is required for a transactlonevent
select No journal entry required" In the first account fleld.
