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Unformatted text preview: Oct. 15 Received a dividend from Southern Rail of $0.25 per share. Oct. 31 The fair value of Southern Rail's stock was $9.50 per share. (a) What method should be used to account for this investment? Does management intent influence this decision? If the investment were obtained with the objective of near-term trading for profit, what would be done differently? (b) Prepare journal entries for the activity pertaining to the investment in Southern Rail....
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- Spring '11