Question - On June, 2018, Minute Corp. invested $270.000 in Noah inc. for 50% of its outstanding common shares. At this time, the book value (equity) of Noah inc. was $900.000. Noah pays out 25% of its net income in dividends each year. Minute elects three of five members of Noah's board of directors. During 2018, Minute received a cash dividend of $50.000 from Noah Inc.
Required:
a. Record the initial purchase of the Noah Inc. shares by Minute Corp.
b. Calculate Noah Inc.'s net income for 2014.
c. Record the 2014 journal entries related to this investment on Minute's books.
d. Complete the T-account for the above transactions ($ amounts and labels).
e. The carrying amount of this investment in Minute Corp.'s December 31. 2014 Statement of Financial Position?