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Stock Sale - ABC Corp. Acquiring an Interest in XYZ Inc.

In Year 2, ABC Corp. acquired a 15% interest in XYZ, Inc., for $50,000. During the year, XYZ paid dividends of $10,000 and had net income of $30,000. ABC sold the shares of XYZ for $65,000 cash. What entry will ABC make to record the sale?

Please see the attached word file.

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If you add 15% of $6000 and 15% of $30,000 to the additional $50,000, the ...

Solution Summary

Solution includes a journal entry for the sale of stock by a company that owns 15% of another company.