On January 3, Kostansas Corporation purchased 5,000 shares of Morton, Inc. for $40 per share. These shares represent a 40% ownership in Morton, Inc. Prepare the journal entry Kostansas Corporation should record for the purchase of this investment.
What will be an ideal response?
| Jan. 3 | Equity Method Investments | 200,000 |
| Cash (5,000*$40) | 200,000 |
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a. Level 1. b. Level 2. c. Level 3. d. None of these.
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