Maize Corporation Pays $500,000 for 100,000 Shares to Acquire 40

question 13

Multiple Choice

Maize Corporation pays $500,000 for 100,000 shares to acquire 40% of Teal Investments on January 5, 2016. Maize Corporation sells 10,000 shares for $40,000 on January 6, 2016. Which of the following is the correct journal entry for the transaction on January 6, 2016?

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Definitions:

Media Companies

Organizations engaged in the production, distribution, or sale of media content, including television, radio, internet platforms, and print publications.

Netflix

Netflix is a streaming service that offers a varied collection of TV shows, movies, anime, documentaries, and more on thousands of internet-connected devices.

Media Companies

Businesses that are involved in the production and distribution of news, entertainment, or information through various platforms such as television, radio, the internet, and print.

Horizontal Integration

A type of business expansion strategy where a company acquires or merges with other companies at the same level of the supply chain in similar or different industries.