8. A company made the following wage entries during the year: (1) To record the purchase of an investment in common shares Investment in common stock 300,000 Cash 300,000 (2) To recognize investment income during the year Investment in common stock 60,000 Investment revenue 60,000 I (3) To record dividends received on the investment Cash 20,000 Investment in common stock 20,000 The company will present its EFE using the indirect method for operational activities. The effect of these transactions on operational activities will be: A. None; will not appear in the operational activities of the EFE b. Dividends received are added $ 20,000 c. The excess of income recognized over dividends received is subtracted, $ 40,000 d. $ 280,000 is subtracted ($ 300,000-$20,000) 9. If the company in the previous question will present its EFE using the direct method for operational activities. The effect of these transactions on operational activities will be: to. None; will not appear in the operational activities of the EFE b. Dividends received are added $ 20,000 c. The excess of income recognized over dividends received is subtracted, $ 40,000 d. $ 280,000 is subtracted ($ 300,000-$20,000)