Table 16-7
the Following Are Transactions in the Purchase and Sale

question 104

Essay

Table 16-7
The following are transactions in the purchase and sale of Straton Ltd. shares by Samuels Inc. $$\begin{array} { l l } \text { January } 15,2017 & \text { Purchased } 2,000 \text { shares of Straton at } \$ 20.00 \text { and J} \\\text { February 10,2017 } & \text { Received } \$ 1.00 \text { dividend from Straton. } \\\text { December 31, 2017 } & \text { Straton reported net income of } \$ 6,000 . \\\text { December 31, 2017 } & \text { Market value of Straton shares } \$ 22.00 . \\\text { June 30, 2018 } & \text { Sold all shares of Straton for } \$ 21.00 \text { per share. }\end{array}$$ Record the journal entries for the above transactions for Samuels Inc.
-Refer to Table 16-7.Assume that the investment in Straton shares is classified as a short-term investment by Samuels and Samuels exerts no significant influence over Straton.

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Definitions:

Groupthink

A behavioral pattern observed in groups where the pursuit of agreement or uniformity leads to choices that are illogical or counterproductive.

Challenger Disaster

The catastrophic failure of the Space Shuttle Challenger shortly after its launch on January 28, 1986, leading to the death of all seven crew members.

NASA

The National Aeronautics and Space Administration, a United States government agency responsible for the nation's civilian space program and for aeronautics and aerospace research.

Groupthink

An occurrence in group dynamics where the preference for consensus or compliance leads to outcomes in decision-making that are unreasonable or ineffective.