Global Company purchased 38% shares of Moonlight Company for RO 630,000 in cash. During the year ended 31st December 2020 Moonlight Company had the Net income of RO 370,000 and dividends declared and paid of RO 184,000. Analyze the above and write the journal entry to record the share of net income by using equity method in the books of Global Company?

a.

Cash RO 140,600 Dr / Investment in Moonlight RO 140,600 Cr

b.

Investment in Moonlight RO 140,600 Dr / Investment income RO 140,600 Cr

c.

Cash RO 69,920 Dr / Investment in Moonlight RO 69,920 Cr

d.

Investment in Moonlight RO 69,920 Dr / Cash RO 69,920 Cr

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