Problem

Fair Value Journal EntriesMarlow Company acquired 40 percent of the voting shares of Brown...

Fair Value Journal Entries

Marlow Company acquired 40 percent of the voting shares of Brown Company on January 1, 20X8, for $85,000. The following results are reported for Brown Company:

 

20X8

20X9

Net income

$20,000

$30,000

Dividends paid

10,000

15,000

Fair value of shares held by Marlow:

 

 

January 1

85,000

97,000

December 31

97,000

92,000

Required

Give all journal entries recorded by Marlow for 20X8 and 20X9 assuming it uses the fair value method in accounting for its investment in Brown.

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