On January 1, 2019, Tiger Company purchased 6,720 shares of Eagle Corporation’s common stock when Eagle had 22,400 shares outstanding. On that date, the following information pertained to Eagle:   Eagle Corporation Balance Sheet January 1, 2019 1   Book Value Fair Value 2 Depreciable assets (remaining life, 8 years) $600,000.00 $620,000.00 3 Other non-depreciable assets 290,000.00 300,000.00 4 Total $890,000.00 $920,000.00 5 Liabilities $300,000.00 $330,000.00 6 Shareholders’ equity 590,000.00   7 Total $890,000.00         During 2019, Eagle earned net income of $120,000 and paid total dividends of $48,000. Required:   Prepare the journal entries of Tiger related to its share of Eagle’s net income and dividends in 2019.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14RE
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On January 1, 2019, Tiger Company purchased 6,720 shares of Eagle Corporation’s common stock when Eagle had 22,400 shares outstanding. On that date, the following information pertained to Eagle:
 
Eagle Corporation
Balance Sheet
January 1, 2019
1
 
Book Value
Fair Value
2
Depreciable assets (remaining life, 8 years)
$600,000.00
$620,000.00
3
Other non-depreciable assets
290,000.00
300,000.00
4
Total
$890,000.00
$920,000.00
5
Liabilities
$300,000.00
$330,000.00
6
Shareholders’ equity
590,000.00
 
7
Total
$890,000.00
 
 
 
 
During 2019, Eagle earned net income of $120,000 and paid total dividends of $48,000.
Required:
  Prepare the journal entries of Tiger related to its share of Eagle’s net income and dividends in 2019.
 
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