On January 1,2018,West Coast Boats Paid $ 1,850,000 for Its

question 170

Essay

On January 1,2018,West Coast Boats paid $ 1,850,000 for its 30% investment in East Coast Autos.After the purchase,West Coast Boats has significant influence over East Coast Autos.East Coast Autos earned net income of $30,000,000 and paid cash dividends of $15,000,000 to all outstanding stockholders during 2018.Assume all outstanding stock is voting stock.
Requirement:
1.Journalize all required 2018 transactions related to West Coast Boats' investment in East Coast Autos.Omit explanations.
2.What is the December 31,2018 balance of the investment account? Label your work.

---

Definitions:

Leverage/Commodity Items

The strategic use of commodity items, which are basic goods used in commerce that are interchangeable with other goods of the same type, to gain an advantage in negotiations or cost efficiency.

Bottleneck Items

Goods or components in the supply chain that slow down production or delivery due to their limited availability or high demand.

Cost Management

The process of planning and controlling the budget of a business or project, focusing on reducing expenses to improve profitability.

Internal Demand Analysis

The process of assessing the demand for a company's products or services within the company itself, often for budgeting or planning purposes.