7. Plumstead Corporations 92%-owned subsidiary declared a dividend of $3 a share on its 50,000 outstanding shares

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7. Plumstead Corporation’s 92%-owned subsidiary declared a dividend of $3 a share on its 50,000 outstanding shares of common stock. How does Plumstead record this dividend under:

a. The equity method of accounting?

b. The cost method of accounting?

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