Ayayai Corporation purchased a 20% interest in Moss Inc

Accounting Nov 11, 2020

Ayayai Corporation purchased a 20% interest in Moss Inc. for $300. This investment gave Ayayai significant influence over Moss. During the year, Moss earned net income of $15 and paid dividends of $5. Assuming the purchase price was equal to 20% of Moss's net carrying amount when it was acquired.

Prepare Ayayai's journal entries related to this investment using the equity method. Ayayai applies IFRS.

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