Practice Question 07 Debt investments are initially recorded at cost. cost plus accrued interest. fair value at previous year-end. none of the answer choices is correct. practice question t Assum that ri on o acquir 25% of the common stock of She organ corp an tf $300 000 During the yean Sheboygan Corpi reported net income of S 160.000 and paid total dividends of $601000. If Horcon uses the equity method to account for its investment the balance in the investment account on December will be ,0o0 :$340 000! $400 000 $325,oo0. Pradtice ou tion Assume that con acquired 25% of the co non stock of Sheboygan on nu 300 000 Du the year Sheboygan Gorp. reported netincome of $460,000 and paid total dividends of $60.00o. What entry would Horicon make to record the receipt of the dividend from Sheboyoan? H debit Cash and credit Revenue from Stock Investments a debit qashi and credit stock investments debit cash and credit Dividend Revenue debit bividends and credit Revenue from Stock Investments