Question
Pareto Corporation owns 40% of Spring Corporation. During Year 3, Spring has net income of $60,000. What entry should Pareto record related to its investment
Pareto Corporation owns 40% of Spring Corporation. During Year 3, Spring has net income of $60,000. What entry should Pareto record related to its investment in Spring during Year 3?
| a. | Investment in Spring Corp. 24,000 Equity in Earnings of Affiliate 24,000 |
| b. | Dividend Receivable 24,000 Dividend Income 24,000 |
| c. | Investment Receivable 24,000 Investment Income 24,000 |
| d. | Investment in Spring Corp. 24,000 Investment Income 24,000 |
| e. | Investment in Spring Corp. 24,000 Cash 24,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Statements The Ultimate Guide To Financial Statements Analysis For Business Owners And Investors
Authors: Greg Shields
1st Edition
172643320X, 978-1726433204
