Sheffield Inc. owns shares of Tamarisk Corporation stock. At December 31, 2020, the securities were carried in Sheffield’s accounting records at their cost of $997,000, which equals their fair value. On September 21, 2021, when the fair value of the securities was $1,401,000, Sheffield declared a property dividend whereby the Tamarisk securities are to be distributed on October 23, 2021, to stockholders of record on October 8, 2021.Prepare all journal entries necessary on those three dates.
Sheffield Inc. owns shares of Tamarisk Corporation stock. At December 31, 2020, the securities were carried in Sheffield’s accounting records at their cost of $997,000, which equals their fair value. On September 21, 2021, when the fair value of the securities was $1,401,000, Sheffield declared a property dividend whereby the Tamarisk securities are to be distributed on October 23, 2021, to stockholders of record on October 8, 2021.Prepare all journal entries necessary on those three dates.
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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Sheffield Inc. owns shares of Tamarisk Corporation stock. At December 31, 2020, the securities were carried in Sheffield’s accounting records at their cost of $997,000, which equals their fair value. On September 21, 2021, when the fair value of the securities was $1,401,000, Sheffield declared a property dividend whereby the Tamarisk securities are to be distributed on October 23, 2021, to stockholders of record on October 8, 2021.
Prepare all
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