Assume that a parent Corporation had appropriately accounted for the December 31, 2020, business combination with its 80% owned subsidiary and that subsidiary had a net income of $80,000 for the year ended December 31, 2021, Assume further that on December 20, 2021, subsidiarys board of directors declared a cash dividend of $0.60 a share on the 50,000 outstanding shares of common stock owned by Parent. subsidiarys journal entry to record the dividend declaration to parent is:

a.

Intercompany Dividends Payable debit $30,000 and cash credit $30,000.

b.

Dividends Declared debit $ 24,000 and Intercompany Dividends Payable credit $24,000.

c.

Intercompany Dividends Payable debit $24,000 and cash credit $24,000.

d.

Dividends Declared debit $ 30,000 and Intercompany Dividends Payable credit $30,000.

Amy and Bamy, partners of Amy & Bamy LLP, who share net income and losses in a 60:40 ratio respectively, decided to liquidate the partnership. A portion of the noncash assets had been realized, but assets with a carrying amount of $42,000 were yet to be realized. All liabilities had been paid, and cash of $20,000 was available for distribution to partners. The partners capital account credit balances were $40,000 for Amy and $22,000 for Bamy. the journal entry for cash distribution (totaling 20,000) includes:

Select one:

a.

Debit $14,800 to Amy capital and debit $5,200 to Bamy capital.

b.

Debit $8,000 to Amy capital and debit $12,000 to Bamy capital.

c.

Debit $5,200 to Amy capital and debit $14,800 to Bamy capital.

d.

Debit $12,000 to Amy capital and debit $8,000 to Bamy capital.