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Corporation purchased 17% of the outstanding shares of common stock of Prey Corporation as a long-term investment. Subsequently, Prey Corporation reported net income and declared

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Corporation purchased 17% of the outstanding shares of common stock of Prey Corporation as a long-term investment. Subsequently, Prey Corporation reported net income and declared and paid cash dividends. What journal entry would Predator Corporation use to record the receipt of dividends from Prey Corporation? a. Debit Cash; Credit Dividend Revenue. b. Debit Investment in Prey Corporation; Credit Cash. c. Debit Investment in Prey Corporation; Credit Income of Prey Corporation. Debit Cash; Credit Investment in Prey Corporation. d. 2. -The Ashleigh Slocomb Company owns 40% of the voting stock of the William Duncan Company and uses the equity method in recording the investment. The William Duncan Company reported a $20,000 net loss for the current year. The Ashleigh Slocomb Company's journal entry would include: a. Debit to the loss account for $20,000. b. Debit to the investment account for $8,000. c. Credit to the investment account for $20,000. d. Credit to the investment account for $8,000. 13. makes an investment in 100 shares of the The Sharyl Snider Corporation Chase Yaw Company's common stock. The stock is purchased for $40 per share plus brokerage fees of $300. The journal entry to record the purchase of the shares is: a. Debit Stock Investments for $4,000; Credit Cash for $4,000. b. Debit Debt Investments for $4,300; Credit Cash for $4,300 c. Debit Stock Investments for $4,300; Credit Cash for $4,300. d. Debit Stock Investments for $4,000; Debit Brokerage Fee Expenses for $300; and Credit Cash for $4,300. 14. Temporary investments are: a. Recorded at cost and reported at cost. b. Recorded at cost but reported at fair market value. c. Recorded at cost but reported at lower of cost or fair market value. d. Recorded at fair market value and reported at fair market value. ISL l 15. Irs 1,000,000 of 8% bonds are issued at 102 1 /2, then the amount of cash received from the sale is: a. $975,000 b. $1,000,000 c. $1,025,000 d. $1,080,000

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