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In 2019, Gigajoule Corporation used the equity method to account for a 25% ownership interest in Megawatt Corporation. If Megawatt Corporation reports $400,000 of income
In 2019, Gigajoule Corporation used the equity method to account for a 25% ownership interest in Megawatt Corporation. If Megawatt Corporation reports $400,000 of income and pays $80,000 of dividends in 2019, the net effect of the entries made by Gigajoule Corporation in 2019 will be to: reduce the Investment account by $320,000 reduce the Investment account by $80,000 increase the Investment account by $320,000 increase the Investment account by $80,000
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