Information Pertaining to Long-Term Share Investments in 2014 by Tate

question 52

Essay

Information pertaining to long-term share investments in 2014 by Tate Corporation follows:
Acquired 10% of the 250,000 ordinary shares of of Barkly Company at a total cost of $8 per share on January 1, 2014. On July 1, Barkly Company declared and paid a cash dividend of $2 per share. On December 31, Barkly's reported net income was $654,000 for the year.
Obtained significant influence over Tolan Company by buying 25% of Tolan's 100,000 outstanding shares at a total cost of $22 per share on January 1, 2014. On June 15, Tolan Company declared and paid a cash dividend of $1.50 per share. On December 31, Tolan's reported net income was $280,000.
Instructions
Prepare all necessary journal entries for 2014 for Tate Corporation.

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Definitions:

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