Pan Services, Inc. owns 32% of voting stock of Grey Investments, Inc. During the year 2017, Grey Investments, Inc. earned profits of $320,000. Under the equity method, which of the following journal entries will Pan Services record?
A)
Long-term Investments-Grey Investments, Inc. 320,000
Cash 320,000
B)
Cash 102,400
Dividend Revenue 102,400
C)
Cash 102,400
Long-term Investments-Grey Investments, Inc. 102,400
D)
Long-term Investments-Grey Investments, Inc. 102,400
Revenue from Investments 102,400
D .Revenue from Investments = ($320,000 x 0.32 ) = $102,400
You might also like to view...
When Amazon’s managers engage in the process of developing a list of questions to evaluate their company’s internal situation, which question does not address the task of evaluating Amazon’s resources and competitive position?
a. What strategic issues and problems merit front-burner managerial attention at Amazon? b. How well is Amazon’s present strategy working? c. Are Amazon’s sales and earnings increasing or decreasing? d. Which are Amazon’s least and most profitable geographic market segments? e. How do Amazon’s value chain activities impact its cost structure and customer value proposition?
Borrowing bits from the host portion of an IP address in order to use those bits as part of a network identifier creates a subnet
Indicate whether the statement is true or false