Business, 06.09.2021 22:40 ashleylit8

Barneys Inc. acquired 20% of the outstanding common stock of Santos Inc. on December 31, 2020. The purchase price was $1,200,000 for 50,000 shares. Santos Inc. declared and paid an $0.85 per share cash dividend on June 30 and December 31, 2021. Santos reported net income of $730,000 for 2021. The fair value of Santos’s stock was $27 per share at December 31, 2021. Instructions: a. Prepare the journal entries for Barneys Inc. for 2020 and 2021, assuming that Barneys cannot exercise significant influence over Santos. b. Prepare the journal entries for Barneys Inc. for 2020 and 2021, assuming that Santos can exercise significant influence over Santos.

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Barneys Inc. acquired 20% of the outstanding common stock of Santos Inc. on December 31, 2020. The p...