六.12%Presented below are two independent situations. 1.Chicory Cosmetics acquired 15% of the 200,000 ordinary shares of Racine fashion at a total cost of $13 per share on March 18, 2014. On June 30, Racine declared and paid a $0.3 per share dividen
(D) On December 31, Racine reported net income of $122,000 for the year. At December 31, the market price of Racine Fashion was $15 per share. The shares are classified as non-trading. 2.Frank, In
(C), obtained significant influence over Nowak Corporation by buying 30% of Nowak’s 30,000 outstanding ordinary shares at a total cost of $9 per share on January 1, 2014. On June 15, Nowak declared and paid a cash dividend of $ 1 per share. On December 31，Nowak reported a net income of $80,000 for the year.InstructionsPrepare all the necessary journal entries for 2014 for
(a) Chicory Cosmetics and