1) On January 1, 2015 Kardashian Company purchased 100 of the 1000
shares of West Company for $40,000. At
this time all of Wests assets fair market values approximated their book
value. With this 10% ownership,
Kardashian was unable to have a significant influence over West. In 2015, West reported income of $10,000; and
paid a dividend of $2000. On December
31, Wests stock was selling for $425 per share.
On January 1, 2016 Kardashian Company purchased another 200
shares of West Company for $85000. With
this additional purchase, Kardashian now has significant influence over
West. At the time of purchase, any
excess of market price over the value of Wests assets was attributable to
goodwill. In 2016 West reported a profit
of $4000 and paid a dividend of $1000.
On December 31, 2016; Wests stock is selling for $435 per share.
In 2017 West company
reported a loss of $2000 and paid a dividend of $800. On December 31, 2017 Wests stock was selling for $390 per share.
On January 5th 2018 Kardashian sold its entire
investment in West for $404 per share.

REQUIRED: PREPARE ALL THE NECESSARY JOURNAL ENTRIES FOR
KARDASHIAN DUE TO ITS INVESTMENT IN WEST FOR
A) 2015
B) 2016
C) 2017
D) 2018
1) On January 1, 2015 Kardashian Company purchased 100 of the 1000
shares of West Company for $40,000. At
this time all of Wests assets fair market values approximated their book
value. With this 10% ownership,
Kardashian was unable to have a significant influence over West. In 2015, West reported income of $10,000; and
paid a dividend of $2000. On December
31, Wests stock was selling for $425 per share. On January 1, 2016 Kardashian Company purchased another 200
shares of West Company for $85000. With
this additional purchase, Kardashian now has significant influence over
West. At the time of purchase, any
excess of market price over the value of Wests assets was attributable to
goodwill. In 2016 West reported a profit
of $4000 and paid a dividend of $1000.
On December 31, 2016; Wests stock is selling for $435 per share. In 2017 West company
reported a loss of $2000 and paid a dividend of $800. On December 31, 2017 Wests stock was selling for $390 per share. On January 5th 2018 Kardashian sold its entire
investment in West for $404 per share. REQUIRED: PREPARE ALL THE NECESSARY JOURNAL ENTRIES FOR
KARDASHIAN DUE TO ITS INVESTMENT IN WEST FORA) 2015B) 2016C) 2017 D) 2018