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Home / Questions / On May 20 2017 Montero Co paid $1000000 to acquire 25000 shares 10% of ORD Corp as a longt...

On May 20 2017 Montero Co paid $1000000 to acquire 25000 shares 10% of ORD Corp as a longterm available-for-sale investment On August

On May 20, 2017, Montero Co. paid $1,000,000 to acquire 25,000 shares (10%) of ORD Corp. as a longterm available-for-sale investment. On August 5, 2018, Montero sold one-half of these shares for $625,000. 1. Should the fair value or cost method be used to account for this investment on the balance sheet? 2. Prepare entries to record both (a) the acquisition and (b) the sale of these shares.

Apr 21 2020 View more View Less

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