2. FJUM Enterprises purchased 20% of the outstanding common stock of Novel, Inc., on April 1,
2020, paying S750,000 for stock, plus brokerage fee $10,000. During 2020, Novel reported net income of
$300,000 and paid dividends to shareholders of S50,000. On December 31, 2020, FJUM's investment in Novel stock had a fair market value of $790,000. On January 2, 2021, FJUM sold half investment of Novel, Inc. stock for $450,000.
Required: Assuming this is the only security owned by FJUM, prepare all journal entries required by FJUM
in 2020 and on January 2, 2021 assuming:
【題組】(1) The security is classified as a FVTPL (Fair Value Through Profits or Loss) financial asset--equity.