A corporation that uses the equity method of accounting for its investment in a 40 % -owned

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A corporation that uses the equity method of accounting for its investment in a 40 % -owned investee that earned $ 20,000 and paid $ 5,000 in dividends made the following entries :

Investment in subsidiary $ 8,000

Equity in earnings of subsidiary $ 8,000

Cash $ 2,000

Dividend revenue $ 2,000

What effect will these entries have on the parent's statement of financial position ?

Related Book For answer-question

Advanced Accounting

ISBN: 978-0134472140

13th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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Posted Date: May 23, 2023 07:53 AM

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A corporation that uses the equity method of accounting for its investment in a 40 % -owned

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The entries provided indicate the transactions related to the parent corporations investment in a 40 ... View the full answer

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