On January 1, Oak Corporation Purchased a 40% Equity Investment

Essay

On January 1, Oak Corporation purchased a 40% equity investment in Pine Corporation for $600,000. On December 31, Pine paid a $20,000 dividend and reported a net loss of $120,000. The fair value of the shares on December 31 was $550,000.Instructions
a. Record the above transactions and events.
b. Determine the amount to be reported as the investment in Pine Corporation at December 31.