Kudos Corporation Bought a 40% Interest in the Voting Stock

question 26

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Kudos Corporation bought a 40% interest in the voting stock of Nutribar Corporation's $1 par value common stock for $20 million (2 million shares at a $10 market price)on March 31,2010.On December 12,2010,Nutribar declared and paid a $1 million cash dividend and reported net income for the year ended 2010 of $10 million.On December 31,2010,Nutribar's stock was trading at $11.50 per share.
Requirements:
A.Record the journal entry on Kudos' book for the acquisition of Nutribar on March 31, 2010.
B.Record the cash dividend received by Kudos on December 12, 2010.
C.Record any end of year entries needed on Kudos' books.

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