For the method used in the literature, the journal entry to record the sale would have to
be:
Dr. Cash ..................................................................$ 1,100,000
Paid-in capital ............................................................ 38,071
Cr. Investment .................................................................. $ 917,571
Gain on sale................................................................ 220,500
For the method used in the literature, the journal entry to record the sale would have tobe:Dr. Cash ..................................................................$ 1,100,000Paid-in capital ............................................................ 38,071Cr. Investment .................................................................. $ 917,571Gain on sale................................................................ 220,500
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