What effect will these entries have on the investor, Accounting Basics

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What effect will these entries have on the investor

A corporation uses the equity method to account for its 40% ownership of another company. The investee earned $20,000 and paid $5,000 in dividends. The investor made the following entries:

Investment in affiliate $8,000
Equity in earnings of affiliate $8,000
Cash $2,000
Dividend revenue $2,000

What effect will these entries have on the investor's statement of financial position?

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Accounting Basics: What effect will these entries have on the investor

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Accounting Basics: What effect will these entries have on the investor

Reference No:- TGS0699693

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Use the present value tables provided

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Q : Ratio of the area of the circumscribed square

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What effect will these entries have on the investor

Reference No:- TGS0699693

Recent Questions Asked Accounting Basics

Q : Use the present value tables provided

Q : When the equity method is used to account

Q : Ratio of the area of the circumscribed square

Q : How much salary should zorn receive during the period

Q : What effect will these entries have on the investor

Q : Compute the adjustment due

Q : How much area can he graze by goat

Q : How do these excesses of the fair values over

Q : What amount should well report as investment in rea

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