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09. Use the information in question 6 and assume that Green Energy does not have significant influence over the operations of EEC. In addition, Green
09. Use the information in question 6 and assume that Green Energy does not have significant influence over the operations of EEC. In addition, Green Energy classifies its investment in EEC as trading securities. The fair value of Green Energy's investment in EEC was $570 million on 12/31/2018 and the fair value adjustment account balance was a debit of $20 million prior to the fair value adjustment on 12/31/2018. What is the journal entry to record Green Energy's receipt of cash dividend for 2018? 2,000,000 2,000,000 8,000,000 Select one: O a. Equity Investments Dividend Revenue O b. Equity Investments Dividend Revenue O c. Cash Dividend Revenue O d. Cash Equity Investments 8,000,000 8,000,000 8,000,000 ,8,000,000 8,000,000 06. On January 2, 2018, Green Energy Corp. purchased 40% of the outstanding common shares of EEC Company for $500 million. At the date of purchase, the fair value of EEC net assets was $800 million. The book values and fair values for all balance sheet items of EEC Company were the same on January 2, 2018. EEC Company reported net income of $100 million for the year ended December 31, 2018 and paid a cash dividend of $20 million to all shares outstanding in 2018. Green Energy Corp. received $8 million cash dividend from EEC in 2018. Based on the above information, what is the journal entry to record Green Energy's 2018 investment revenue for its investment in EEC Company using the equity method? Select one: O a. Cash Investment Income O b. Equity Investments Investment Income O c. Investments Receivable Investment Income O d. No entry needed. 40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 40,000,000
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