Kudos Corporation Bought a 40% Interest in the Voting Stock

question 3

Essay

Kudos Corporation bought a 40% interest in the voting stock of Nutribar Corporation's $1 par value common stock for $20 million, in exchange for 2 million shares at a $10 market price, on March 31, 2014. On December 12, 2014, Nutribar declared and paid a $1 million cash dividend and reported net income for the year ended 2014 of $10 million. On December 31, 2014, Nutribar's stock was trading at $11.50 per share.
Required:
A. Record the journal entry on Kudos' book for the acquisition of Nutribar on March 31, 2014.
B. Record the cash dividend received by Kudos on December 12, 2014.
C. Record any end of year entries needed on Kudos' books.

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Definitions:

Cuticle

The protective layer found on the outer surface of leaves, stems, and other organs of plants.

Collenchyma

A type of plant tissue characterized by its living, elongated cells with unevenly thickened walls, providing support and flexibility.

Water and Minerals

Essential components for biological organisms, facilitating metabolic processes and structural functions.

Companion Cells

Plant cells that are intimately associated with sieve tube elements in the phloem and help in the transport of substances essential for the plant's metabolism.