Ultra Cosmetics Acquired 10% of the 200,000 Shares of Common

question 44

Essay

Ultra Cosmetics acquired 10% of the 200,000 shares of common stock of Kardashian Fashion at a total cost of $14 per share on March 18, 2017. On June 30 Kardashian declared and paid a $96,000 dividend. On December 31 Kardashian reported net income of $244,000 for the year. At December 31 the market price of Kardashian Fashion was $16 per share.
Instructions
Prepare all the necessary entries for 2017 for Ultra Cosmetics.