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double
Jan 25, 2008, 07:32 AM
I need help with the following questions...

If corporation 1 purchased 35% of the outstanding shares of common stock of corporation 2 as a long-term investment. Subsequently, corporation 2 reported a net income and declared and paid cash dividends. What journal entry would corporation1 use to record its shares of earnings of corporation 2?

Also, what journal entry would corporation 1 use to record the dividends it receives from corporation 2?