What valuation method should be used to account


On May 20,2009, Chiu Co. paid $1,500,000 to acquire 25,000 common shares (10%) of BBE Corp. as a long-term investment. On August 5, 2010, Chiu sold one-half of these shares for $937,500. What valuation method should be used to account for this stock investment? Prepare entries to record both the acquisition and the sale of these shares.

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Accounting Basics: What valuation method should be used to account
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