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On 03/01/2019 ABC Company purchased 30% of the stock of XYZ Corporation for $6,000,000. How will ABC treat a 2019 cash dividend paid by XYZ

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On 03/01/2019 ABC Company purchased 30% of the stock of XYZ Corporation for $6,000,000. How will ABC treat a 2019 cash dividend paid by XYZ to its shareholders? ABC will record the dividend using the equity method. The dividend will therefore be reported as a reduction in the amount of the investment in XYZ. ABC will record the dividend using the equity method. The dividend will therefore be reported as an increase in the amount of the investment in XYZ. ABC will record the dividend using the culty method The dividend will therefore be reported as dividend revenue On 01/01/2018, Hanny Company acquired 60,000 shares of the 400,000 outstanding shares of Edwards Company common stock for $240,000. The investment was properly classified as an available for sale investment by Hanny. During 2018, Edwards declared a total of $100,000 cash dividends to its common shareholders. Edwards earned $200,000 in net income for the year ended 12/31/2018. The year-end valuation of Edwards Company on the stock market was $4.50 per share. What is the total valuation of the investment on Hanny's balance sheet at 12/31/2018? $240,000 $255.000 $ 270.000 $340,000 On 01/15/2019, Jurrie Enterprises, a manufacturing corporation, purchases 10,000 shares of its own common stock from a dissident shareholder, paying $150,000, and records the transaction as treasury stock. Jurrie makes the following journal entry on 01/15/2019: Debit treasury stock $150,000, credit cash $150,000. On 04/25/2019, Jurrie sells 3,000 shares of this stock to a new shareholder and receives $84,000. Jurrie should make the following journal entry: Debit cash $84,000. credit treasury stock $84,000 Debit cash $45.000, debit treasury stock $39.000, credit retained earnings $84.000 Debit cash $84.000 credit treasury stock $45.000

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