Cash Dividends

On December 1, 2018, Synthetic Corp. owns 15,000 ordinary shares representing 15% of the shares outstanding of Prowess Corporation. During the same date, Prowess declared P2 per share dividends on ordinary shares to the shareholders of record on December 15 payable on December 31.

a.Prepare the necessary entries at the

-Date of declaration

-Date of record

-Date of payment

b.How much is the dividend income to be recognized on 2018?