Question
Inspirational Corporation (IC) purchased 2,000 shares of Dalmation Corporation (DC), representing a 10% ownership interest for $15 per share. The company intended to hold this
Inspirational Corporation (IC) purchased 2,000 shares of Dalmation Corporation (DC), representing a 10% ownership interest for $15 per share. The company intended to hold this investment for a number of years. IC received a cash dividend of $2 per share from DC. The shares were then sold for $32,000. The entry to record the sale in IC's book does not include O a debit to Loss on Sale of Long-term Investments for $2,000. O a debit to Cash for $32,000. O a credit to Long-term Investments for $30,000. O a credit to Gain on Sale of Long-term Investments for $2.000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started