Instructure.com/course/140 4 pts D Question 15 If a parent is using the cost method, what would be the appropriate journal entry for recording a cash dividend paid to it by its 70% owned subsidiary? Debit Cash & Credit Dividend Income Debit Dividend Income & Credit Cash Debit Investment in Sub & Credit Cash Debit Cash & Credit Investment in Sub No journal entry is needed 4 pts Question 16 With cash, Portlandia Corp. bought 80% of Salem Corp. for $100,000 over book value on Jan. 1. 20X6. At date of acquisition, Salem's stockholder equity section contained Common Stock & Retained Earnings. During 20X6. Salem Co. earned income (not a loss) & paid dividends. Portlandia made all required journal entries using the equity method. On Portlandia's books, which journal entry is needed to record their initial investment in Salem: Debit Investment in Salem and Credit Cash Debit Cash and Credit Investment in Salem Mc Graw w dtv Hill 12 3 pts Question 9 NCI in net income should be reported on the consolidated income statement as: a distribution of consolidated net income an operating expense a nonoperating expense. other revenue. Question 10 3 pts Why must Intercompany transactions be eliminated? They are not arm's-length transactions They portray the consolidated company's results too conservatively, They understate the results of the consolidated group. They are arm's length transactions