Question
In: Finance
Give the entry in each situation or explain why no entry is needed. In each case,...
Give the entry in each situation or explain why no entry is needed. In each case, Big Company owns stock in Little.
1. Big company receives $500 in dividends from Little. Assume Big has made no prior entry to create a receivable, and Big accounts for Little using the equity method of accounting.
2. Big company receives $500 in dividends from Little. Assume Big has made no prior entry to create a receivable, and Big uses the fair value method of accounting for its investment in Little.
3. Big company receives $500 in dividends from Little. Assume Big has made no prior entry to create a receivable, and Big uses the cost method of accounting for Little.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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