on 1/1/2017 Assume that Home Corp. acquired 25% of the ordinary shares of South Corp for $300,000

During 2017, South Corp. reported net income of $160,000 and paid total dividends $60,000. If Home uses the equity method to account for its

investment, the credit side in the journal entry to record gain from investment account on December 31, 2017, will be

Select one:

a. cash 40,000

b. gain from investment 60,000

c. investment 40,000

d. gain from investment 40,000