On January 1, 2017, as a Long-Term Investment, Samantha Ltd

Essay

On January 1, 2017, as a long-term investment, Samantha Ltd. purchases 2,000 Marvel Corp. common shares for $10 each, which represents 50% of the issued shares. Marvel Corp. is a private company not traded on the stock market. Samantha is also a private company, reporting under ASPE, and chooses to use the cost method to account for the Marvel investment.On July 1, 2017, Marvel pays a total dividend of $38,000.At year end, December 31, 2017, a fair value of the Marvel shares is not available, but Samantha estimates the fair value is $11.50.On November 1, 2018, Samantha sells 40% of its holdings back to Marvel for $12,500.InstructionsPrepare all necessary journal entries relating to this investment on Samantha's books.