1. 1. Purple Corporation pays $514,000 to acquire 44% of the equity securities of Blue, Inc. on May 5, 2025. In the journal entry to record this transaction ________.

   A.

   Revenue from Investments will be credited for $514,000

   B.

   Equity InvestmentsBlue Inc. will be debited for $514,000

   C.

   Common Stock HoldingsBlue Inc. will be debited for $514,000

   D.

   Equity InvestmentsBlue Inc. will be credited for $514,000

   2. Orbit Services, Inc. pays $740,000 to acquire 35% (100,000 shares) of the voting stock of State Investments, Inc. on January 5, 2025. State Investments, Inc. declares and pays a cash dividend of $4.40 per share on June 14, 2025. Which of the following is the correct journal entry for the transaction on June 14, 2025?

   A.

   Cash	440,000
   Dividend Revenue		440,000

   B.

   Cash	440,000
   Retained Earnings		440,000

   C.

   Cash	440,000
   Equity InvestmentsState Investments, Inc.		440,000

   D.

   Equity InvestmentsState Investments, Inc.	440,000
   Cash		440,000