During 2016, Eagle earned net income of $120,000 and paid total dividends of $48,000. Required:...
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Accounting
During 2016, Eagle earned net income of $120,000 and paid total dividends of $48,000.
Required:
Prepare the journal entries of Tiger related to its share of Eagles net income and dividends in 2016.
On January 1, 2016, Tiger Company purchased 6,720 shares of Eagle Corporations common stock when Eagle had 22,400 shares outstanding. On that date, the following information pertained to Eagle:
Eagle Corporation
Balance Sheet
January 1, 2016
1
Book Value
Fair Value
2
Depreciable assets (remaining life, 8 years)
$600,000.00
$620,000.00
3
Other non-depreciable assets
290,000.00
300,000.00
4
Total
$890,000.00
$920,000.00
5
Liabilities
$300,000.00
$330,000.00
6
Shareholders equity
590,000.00
7
Total
$890,000.00
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