Jade Investments, Inc. purchased 45% of the common stock of Ivory Corporation on March 1, 2017. Ivory Corporation reports a net income of $720,000 for the 2017 year. Which of the following is the correct journal entry?
A)
Long-term Investments-Ivory Corporation 324,000
Revenue from Investments 324,000
B)
Cash 324,000
Revenue from Investments 324,000
C)
Revenue from Investments 324,000
Cash 324,000
D)
Revenue from Investments 324,000
Long-term Investments-Ivory Corporation 324,000
A .Revenue from Investments = $720,000 x 0.45 = $324,000
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