ABC Corp. owns 40% of Magnor Company's common stock. Magnor pays $97,000 in total cash dividends to

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ABC Corp. owns 40% of Magnor Company's common stock. Magnor pays $97,000

in total cash dividends to its shareholders. Zhang's entry to record this transaction

should include a:

A.Debit to Dividends for $97,000.

B. Debit to Dividends for $38,800.

C. Debit to Long-Term investments for $97,000.

D. Credit to Long-Term Investments for $38,800.

E. Credit to Cash for $97,000.

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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Posted Date: Apr 14, 2022 06:23 AM

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ABC Corp. owns 40% of Magnor Company's common stock. Magnor pays $97,000 in total cash dividends to

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Answer Option D Credit to long te... View the full answer

Fundamentals of Corporate Finance

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