Question: If the fair value method is used to account for a long-term investment in common shares and fair value changes are reported through other comprehensive

If the fair value method is used to account for a long-term investment in common shares and fair value changes are reported through other comprehensive income, dividends received should be

debited to the Long-Term Equity Investment account.

recorded only when 20% or more of the shares are owned.

credited to the Long-term Equity investment account.

credited to the Dividend Revenue account.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

12. Which of the following is not a condition which would require the recording of a lease contract as a capital lease? a. The lease term is less than 75% of the economic life of the leased property....

If the equity method is used to account for a long-term investment in common stock cash dividends received from the investee are recorded by the investor as a debit to cash and a credit to...

12. Which of the following is not a condition which would require the recording of a lease contract as a capital lease? a. The lease term is less than '?5% of the economic life of the leased...

On January 1, 2019, HK Corp. paid $800,000 for 100,000 shares of Jackie Company's common stock, which represents 30% of Jackies outstanding common stock. Jackie reported net income of $50,000 and...

I NEED TO BE ABLE TO SEE ALL CALCULATIONS AND COMPUTATIONS PLEASE Booster Company is preparing its financial statements for the year ended June 30, 2018. The financial statements are complete except...

Prepare journal entries for the additional information. PLEASE USE THE WORKSHEET. Fill the worksheet and prepare the statement of cash flows using the indirect method in good form with all necessary...

PLEASE USE THE WORKSHEET. Fill the worksheet and prepare the statement of cash flows using the indirect method in good form with all necessary disclosures, including disclosures about non-cash...

i need to create a statment of cashflows inidrect method with the following info. how would i do that? net income or even sales is not provided. were in ch21 intermediate accounting 2 statment of...

PREPARE THE JOURNAL ENTRIES GIVEN THE FOLLOWING: Additional information: a. Dividends declared and paid totaled $650. b. 300 shares of common stock (at par) were issued for cash. c. On July 1, 2017,...

Booster Company is preparing its financial statements for the year ended June 30, 2018. The financial statements are complete except for the statement of cash flows. You have been asked to prepare a...

Bentley Corp. and Rolls Manufacturing are considering a merger. The possible states of the economy and each companys value in that state are shown here: a) What is the value of each company before...

Explain what is done in anodic stripping voltammetry. Why is stripping the most sensitive voltammetric technique?

When auditing an entity s reported amount for property, plant, and equipment, which assertion will be supported with evidence obtained by the auditor during an examination of the repairs and...

1. (2 pts) Perform a multiplication of two binary numbers (multiplicand 0101 and multiplier 0101) by creating a table to show steps taken, multiplicand register value, multiplier register value and...