On January 1, 2024, Russell, Inc. decides to invest in 7,000 shares of Thoroghbred stock when the stock is selling for $18 per share. On June 1, 2024, Thoroghbred paid a $1.10 per share cash dividend to stockholders. On December 31, 2024, Thoroghbred reports net income of $80,000 for 2024. Assume Thoroghbred has 20,000 shares of voting stock outstanding during 2024 and Russell has significant influence over Thoroghbred. Read the requirements. Jun. 1 Date Cash Received cash dividend (equity method). December 31: Thoroghbred reports net income of $80,000 for 2024. Accounts and Explanation Dec. 31 Equity Investments-Thoroghbred 7,700 Debit 7,700 Credit

On Jenuary 1, 2024, Russeil. lnc. decides to invest in 7,000 shares of Thoroghtred stock when the stock is seling fer $18 per share. On June 1 , 2024. Thoroghbred paid a $1,10 per share cash dividend to stockholders. On December 31, 2024. Thoroghbred reports net income of $80,000 for 2024, Assume Thoroghbred has 20,000 shares of voting stock outstanding during 2024 and Fussell has significant infuence over Thoroghbred Read the ieouirements December 31: Thoroghtred reports net inceme of $80,000 for 2024