On January Mojito Corporation purchased shares of the
outstanding stock of Dulcinea Corporation for $ During Dulcinea
Corporation paid total dividends of $ and earned $ in net income. At the
end of Dulcinea Corporations stock had a fair market value of $
Required:
a Prepare the journal entries that Mojito would make during assuming that they
do NOT have significant influence over Dulcinea as a result of their stock ownership
ie fair value method
b Prepare the journal entries that Mojito would make during assuming that they
do have significant influence over Dulcinea as a result of their stock ownership ie
equity method
show in excel format
