ournal Entries: 1.) Purchased 9600 shares of Tammy's Company for $10 per share, plus $4800 commission. Our company purchased less than 20% of the outstanding stock of Tammy's Company.

me.2

x Your answer is incorrect. Inspirational Corporation (IC) purchased 2,000 shares of Dalmation Corporation (DC). representing a 10% ownership interest. The company intended to hold this Investment for a number of years and accounted for the investment using the cost model. IC received a cash dividend of $2 per share from DC. The entry to record the dividend in IC's book includes a credit to Long-term Investments for $4,000. credit to Dividend Income for $4,000. debit to Long-term Investments for $4,000. debit to Dividend Income for $4,000.

Use the PFRS for SMEs) On 31 December 20X1 entity A acquired 30 per cent of the ordinary shares that carry voting rights of entity B for ₱100,000. Entity A incurred transaction costs of ₱1,000 in acquiring these shares. Entity A has significant influence over entity B. Entity A uses the cost model to account for its investments in associates. In January 20X2 entity B declared and paid a dividend of ₱20,000 out of profits earned in 20X1. No further dividends were paid in 20X2, 20X3 or 20X4. A published price quotation does not exist for entity B. At 31 December 20X1, 20X2 and 20X3, in accordance with Section 27 Impairment of Assets, management assessed the fair values of its investment in entity B as ₱102,000, ₱110,000 and ₱90,000 respectively. Costs to sell are estimated at ₱4,000 throughout. Entity A measures its investment in entity B on 31 December 20X1, 20X2 and 20X3 respectively at: a. ₱100,000, ₱100,000, ₱100,000. b. ₱95,000, ₱95,000, ₱86,000. c. ₱98,000,…