Using the information in Question 6, what entry would Horicon make to record the receipt of the dividend from Sheboygan?

a. Debit Cash and credit Revenue from Share Investments.

b. Debit Cash Dividends and credit Revenue from Share Investments.

c. Debit Cash and credit Share Investments.

d. Debit Cash and credit Dividend Revenue.

Question 6

Assume that Horicon NV acquired 25% of the ordinary shares of Sheboygan NV on January 1, 2025, for €300,000. During 2025, Sheboygan reported net income of €160,000 and paid total dividends of €60,000. If Horicon uses the equity method to account for its investment, the balance in the investment account on December 31, 2025