On January ?1, 2016?, Bryant, Inc. decides to invest in 7,500 shares of Dressage stock when the stock is selling for $10 per share. On July ?1, 2016?, Dressage paid a $ 0.90 per share cash dividend to stockholders. On December? 31, 2016?, Dressage reports net income of $80,000 for 2016. Assume Dressage has 30,000 shares of voting stock outstanding during 2016.
Requirement 1. Identify what type of investment the Dressage stock is for Bryant.
Bryant's investment would be (a controlling interest, a held-to-maturity, a significant interest, an available-for-sale) investment.
Requirement 2. Journalize the transactions related to Bryant's investment in the Dressage stock during 2016.
?(Record debits? first, then credits. Select the explanation on the last line of the journal entry table. If no entry is?required, select? "No entry? required" on the first line of the Accounts and Explanation column and leave the remaining cells? blank.)
January ?1: Bryant?, Inc. decides to invest in 7,500 shares of Dressage stock when the stock is selling for $10 per share.
July 1:Dressage paid a $0.90 per share cash dividend to stockholders
December? 31:Dressage reports net income of $80,000 for 2016.
Requirement 3. In what category and at what value would Bryant's report the investment on the December? 31,2016?, balance? sheet?
Bryant would report a (long-term asset, long-term liability,short-term asset, short-term liabiltity) of $____ on the December 31, 2016, balance sheet.