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On January 1, Vince Corporation purchased a 25% equity in Morelli Corporation for $180,000. At December 31, Morelli declared and paid a $60,000 cash dividend and reported net income of $200,000.
Instructions:
a. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
b. Determine the amount to be reported as an investment in Morelli stock at December 31
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