Orlov Corporation purchased 8,000 shares of Matsey Corporation common stock for $40 per share on January 1, 2009 . Matsey reported net income of $110,000 for 2009 and paid dividends of $45,000 during 2009 . As of December 31, 2009, the market value of Matsey Corporation common stock was $40 per share. Assuming the shares owned by Orlov represent 30 percent of the total outstanding stock of
Matsey, the entry to record the recognition of income by Orlov Corporation is:
a. Cash 33,000
Dividend Income 33,000
b. Investment in Matsey Corporation 110,000
Income, Matsey Corporation Investment 110,000
c. Investment in Matsey Corporation 33,000
Income, Matsey Corporation Investment 33,000
d. Investment in Orloy Corporation 33,000
Cash 33,000
C
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