JayBird Jewelers purchased 3,000,000 of the outstanding 10,000,000 shares of Angel & Associates. At the time of the acquisition, the book value of Angel's net
JayBird Jewelers purchased 3,000,000 of the outstanding 10,000,000 shares of Angel & Associates. At the time of the acquisition, the book value of Angel's net assets equals their fair market value. Angel declared dividends of $273,000 during the year. How will JayBird record the last transaction?
a)JayBird will increase Dividend Revenue by $81,900.
b)JayBird will increase the investment account by $81,900.
c)JayBird will decrease the investment account by $81,900.
d)JayBird will increase Dividend Revenue by $273,000.
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Authors: Robert F. Meigs, Mary A. Meigs, Mark Bettner, Ray Whittington
10th Edition
0070433607, 978-0070433601
