Information Pertaining to Stock Investments in 2017 by Com-Ex Corporation

question 195

Essay

Information pertaining to stock investments in 2017 by Com-ex Corporation follows:
Acquired 15% of the 200,000 shares of common stock of Buffalo Company at a total cost of $9 per share on January 1, 2017. On July 1, Buffalo Company declared and paid a cash dividend of $1.90 per share. On December 31, Buffalo reported net income was $675,000 for the year.
Obtained significant influence over Eta Company by buying 30% of Eta's 120,000 outstanding shares of common stock at a total cost of $25 per share on January 1, 2017. On June 15, Eta Company declared and paid a cash dividend of $2.50 per share. On December 31, Eta's reported net income was $330,000.
Instructions
Prepare all necessary journal entries for 2017 for Com-ex Corporation.

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Definitions:

First-Mover Advantage

The competitive advantage gained by the initial significant occupant of a market segment, allowing for the establishment of strong brand recognition and customer loyalty before rivals enter the market.

Simultaneous Game

refers to a strategic game where all players make their decisions at the same time, without knowledge of the others' choices.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Zero-Sum Game

A situation in game theory where the gain or loss of one player is exactly balanced by the losses or gains of the other participants.