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Sagot :
The appropriate journal entries related to the investment during 2021 is: Debit Investment in Carne shares $78 million; Credit Cash $78 million.
Journal entries
January 2, 2021
Debit Investment in Carne shares $78 million
Credit Cash $78 million
January 12, 2021
Debit Cash $12,000,000
($2 per shares x 6,000,000)
Credit Investment in Carne shares $12,000,000
December 21, 2021
Debit Investment in Carne shares $7,000,000
Credit Investment revenue $7,000,000
(25% x $28,000,000)
December 31, 2021
Debit Investment revenue $1,000,000
Credit Investment in Carne shares $1,000,000
[25% x ($48,000,000 ÷ 12 years)]
December 31, 2021
No journal entry for changes in fair value when using equity method.
Therefore the appropriate journal entries related to the investment during 2021 is: Debit Investment in Carne shares $78 million; Credit Cash $78 million.
Lear more about journal entries here:https://brainly.com/question/14279491
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