McVeigh Corp. owns 40% of Gondor Company's common stock. McVeigh received $41,200 in cash dividends from...

McVeigh Corp. owns 40% of Gondor Company's common stock. McVeigh received $41,200 in cash dividends from Gondor. The entry to record the cash dividend received from Gondor would include a:

		1-Credit to Equity Method Investments for $103,000.
	2-	Credit to Equity Method Investments for $41,200.
		3- Credit to Cash for $41,200.
	4-	Debit to Dividend Revenue for $41,200.
	5-	Debit to Dividends for $103,000.

Expert Solution

The entry would be

Dr : Cash 41,200

Cr : equity method investment 41,200

Option 2 is the answer

ekkarill92 answered 2 years ago

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