Other Comprehensive Income Reported by Investee

Other Comprehensive Income Reported by Investee

Callas Corporation paid $380,000 to acquire 40 percent ownership of Thinbill Company on January 1, 20X9. The amount paid was equal to Thinbill’s underlying book value. During 20X9, Thinbill reported operating income of $45,000 and an increase of $20,000 in the market value of available-for-sale securities held for the year. Thinbill paid dividends of $9,000 on December 10, 20X9.

Required

Give all journal entries that Callas Corporation recorded in 20X9, including closing entries at December 31, 20X9, associated with its investment in Thinbill Company.

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