Question: When an equity method investee declares a dividend, how should the investor company record the event? As a credin to the investment account. As a

When an equity method investee declares a dividend, how should the investor company record the event?
As a credin to the investment account.
As a deball to the invesiment inccount.
As a credit to Dividend income.
No entoy is prepared will that at dend is paid in cash.
When an equity method investee declares a

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!

Q:

BUSI 1043 Quit 4 (chapter 8-Investments) 1) The equity method of accounting for a stoc method of accounting for a stock investment should generally be used when the investor owns 20-50% of the...

Q:

Under the equity method of accounting for investments, dividends paid by the investee are recorded by the investor as: O A. a credit to the Investment account of the investor company OB. a credit to...

Q:

Under the equity method of accounting for investments, dividends paid by the investee are recorded by the investor as: O A. a credit to the Investment account of the investor company OB. a credit to...

Q:

1. Isaac Inc. began operations in January 2013. For certain of its property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes,...

Q:

1.PAS 28 generally applies when the level of ownership over another company is at what percentage? a.Less than 20% b.20%-30% c.20%-50% d.More than 50% 2.When an investor uses fair value accounting to...

Q:

1.PAS 28 generally applies when the level of ownership over another company is at what percentage? a.Less than 20% b.20%-30% c.20%-50% d.More than 50% 2.When an investor uses fair value accounting to...

Q:

Theory: 1. Under IFRS, the fair value option A.Must be applied to all instruments the company holds. B.May be selected as a valuation method by the company at any time during the first 2 years of...

Q:

1.PAS 28 generally applies when the level of ownership over another company is at what percentage? a.Less than 20% b.20%-30% c.20%-50% d.More than 50% 2.When an investor uses fair value accounting to...

Q:

Please answer this!!! 1. Under IFRS, the fair value option A. Must be applied to all instmments the company holds. B. May be selected as a valuation method by the company at any time during the rst 2...

Q:

In accounting for investments in debt securities that are classified as trading (P&L) securities, a. a discount is reported separately. b. a premium is reported separately. c. any discount or premium...

Q:

Why some of the current issues crisis in the healthcare industry presents a challenge in reaching Pareto optimality To what extent do the actions behaviors of government leaders combined with...

Q:

What is the difference between a corporation, a sole proprietorship and a limited liability company?

Q:

A security impact assessment is required _____. Question 24 options: when system ownership changes before changes are made to an information system or when significant changes occur in the operating...

Q:

What are some food related health care issues that inner cities are more likely to see than more affluent areas? Why are certain areas most likely to experience inadequate healthy food options than...