On January 3^rd of 2020, the Board of Directors of XYZ Corporation decided and declared a property dividend to be

distributed on March 10^th 2020. The dividend consisted of 10,000 common shares of the company’s investment in ABC

company. The shares had originally been purchased at $6 per share and had a $1 par value. On Jan. 3^rd, 2020, the market

value per share of the ABC company was $12. XYZ declared the property dividend.

36- On January 3, the appropriate journal entry to make is:

Debit Credit

A)	Retained earnings “or” (dividend declared)	100,000
	Property dividends distributable		100,000
B)	Retained earnings “or” (dividend declared)	100,000
	Property dividends distributable		60,000
	Gain on appreciation of investment in ABC		40,000
C)	Investment in ABC	40,000
	Gain on appreciation of investment in ABC		40,000
	Retained earnings “or” (dividend declared)	100,000
	Investment in ABC		100,000
D)	None of the above

Answer rating: 100% (QA)

Solutions Answer Correct answer is Option D ie None of the above Workin... View the full answer