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Unformatted text preview: declared and paid a dividend of $0.50 per share. July 31 The fair value of Reginald's stock was $29 per share, and the company reported July income of $60,000. (a) What method should be used to account for this investment? (b) Prepare journal entries to account for the activity pertaining to the investment in Reginald Metals. (c) If the investment in Reginald Metals was insufficient to allow Davis to exert significant influence, how would the accounting approach differ?...
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- Spring '11