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  3. 2. jaycie phelps, inc. acquired 20% of the outsta

2. Jaycie Phelps, Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski,...

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Accounting

2. Jaycie Phelps, Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski, Inc. on
January 1, 2007. The purchase price was $1,200,000.00 for 50,000 shares. Kulikowski Inc. declared
and paid an $0.85 per share cash dividend on June 30 and on December 31, 2007. Kulikowski
reported net income of 730,000.00 for 2007. The fair value of Kulikowski's stock was $27.00 per share
at December 31, 2007.
Complete all of the applicable entries for 2007. (check figure: Investment of Kulikowski account after all transactions = 1,261,000.00)
Assume that this same transaction only gives Jaycie Phelps, Inc. a 17% ownership.
Complete all of the applicable entries for 2007. (check figure: net value of Kulikowski after all transactions = 1,350,000.00)

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