The following are transactions in the purchase and sale of Epstein Ltd. shares by Monty Inc.
January 15, 2009Purchase 1, 000 shares of Epstein at $25.00
February 10, 2009Received $1.00 dividend from Epstein
December 31, 2009Epstein reported net income of $10,000.
December 31, 2009Market value of Epstein shares $24.50.
June 30, 2010Sold all shares of Epstein for $26.50 per share.
Record the journal entries for the above transactions for Monty Inc.
155) Refer to Table 16-6. Assume that the investment in Epstein shares is classified as short-term investment by Monty and Monty has no significant influence over Epstein.
156) Refer to Table 16-6. Assume that the investment in Epstein shares is classified as a long-term investment.. Monty exercises significant influence over Epstein by owning 25% of the outstanding shares. Assume that Epstein earned no income from January 1, 2010 to June 30, 2010, nor did it pay any dividends during that period.