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Loeffler Company owns 40% of the common stock of Tetter Co. and uses the equity method to account for the investment. During 2021, Tetter reported
Loeffler Company owns 40% of the common stock of Tetter Co. and uses the equity method to account for the investment. During 2021, Tetter reported income of $260,000 and declared and paid dividends of $90,000. There is no amortization associated with the investment. What journal entries are necessary for Loeffler to recognize the accrual of income earned on the Tetter investment, and Tetter's declaration of dividends during 2021?
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