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Journal entryBeginnerPublished

Question · The initial cost of the investment

Alba SA acquires 30% of Brise SA, over which it has significant influence, and pays 1,200,000 in cash. Case convention: no incidental costs, and the cost includes any implicit goodwill. Record the entry for the initial recognition of the investment.

Cost of the investment
1,200,000
Your answer
  1. Line 1

    Account Investment in associate

  2. Line 2

    Account Cash

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