Instructions:
If required please provide me with the journal entries for the following purchases; and net income and dividends paid:
1. ABC Company purchased a 10% interest in XYZ Company for $750,000 cash. ABC Company has no significant influence. XYZ Company net income is $500,000 and they paid dividends of $100,000
2. NABA Company purchased a 15% interest in AGA Company for $612,000. NABA has significant influence. AGA Company net income is $115,000 and they paid $26,000 in dividends.
3. Beta Company purchased 40% interest in AAA Company for $325,000. Beta Company has significant influence. AAA Company net income is $230,000 and the paid dividends of $50,000.
4. FAF Company purchased 75% interest in FASB Company for $800,000. FASB Company net income of $150, 000 and paid dividends of $30,000.