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As a long-term investment at the beginning of the 2018 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 16 million shares for $68 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $52 million and distributed cash dividends of $.75 per share. At the end of the year, the fair value of the shares is $64 million.
Required: Prepare the appropriate journal entries from the purchase through the end of the year.
Answers: 3
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As a long-term investment at the beginning of the 2018 fiscal year, Florists International purchased...
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