Business, 19.10.2021 16:10 YoungManAlex

Idle Corporation has been acquiring shares of Fast Track Enterprises at book value for the last several years. Fast Track provided data including the following: 20X2 20X3 20X4 20X5 Net Income $ 41,000 $ 56,000 $ 41,000 $ 51,000 Dividends 23,000 23,000 13,000 23,000 Fast Track declares and pays its annual dividend on November 25 each year. Its net book value on January 1, 20X2, was $263,000. Idle purchased shares of Fast Track on three occasions: Date Percent of Ownership
Purchased Amount Paid
January 1, 20X2 10 % $ 25,300
July 1, 20X3 5 17,710
January 1, 20X5 14 70,840
Required:
a. Prepare the journal entries to be recorded on Idle’s books in 20X5 related to its investment in Fast Track.
b. Record purchase of Fast Track stock.
c. Record the pick-up of the difference between cost and equity income.
d. Record dividend from Fast Track Enterprises.
e. Record equity-method income.

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Idle Corporation has been acquiring shares of Fast Track Enterprises at book value for the last seve...

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