Prepare Journal Entries to Record the Following Transactions Associated with at Fair

question 2

Essay

Prepare journal entries to record the following transactions associated with at fair value through other comprehensive income investments purchased by Spark Spread Corporation during 2015 Spark Spread Corporation had no investments prior to 2015.
a.Purchased 1,500 shares of Mercury Coal Corporation common shares for $27.50 per share.
b.Mercury Coal Corporation pays a $1.25 per share dividend to all common shareholders.
c.On December 31,2015,the market price of Mercury Coal Corporation stock is $28.00 per share.

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Definitions:

Welfare Recipients

Individuals or households that receive financial assistance or aid from government programs.

Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country or region.

Income Quintile

A statistical division of population into five equal groups according to income levels.

Federal Income Tax

A tax levied by the United States federal government on the annual income of individuals, corporations, trusts, and other legal entities.