Orleans Corporation Purchased 1,000,000 Shares of Creole Corporation's Common Stock,which

question 53

Essay

Orleans Corporation purchased 1,000,000 shares of Creole Corporation's common stock,which constitutes 10% of Creole's voting stock on June 30,2019 for $42 per share.Orleans' intent is to keep these shares beyond the current year.On December 20,2019,Creole paid a $4,000,000 cash dividend.On December 31,2019,Creole's stock was trading at $45 per share and their reported 2019 net income was $52 million.
A.Record the transaction to record the acquisition of Creole Corporation on June 30,2019.
B.Record the transaction for the dividend received by Orleans on December 20,2019.
C.Record any year-end entries needed by Orleans Corporation.

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