Marcoff Corporation acquires 30% of the outstanding voting common shares of the Invicta Corporation for $600,000 . Marcoff Corporation acquires the investment in Invicta Corporation by buying previously issued shares of Invicta Corporation from other investors. If Invicta Corporation declares and pays a dividend of $30,000 to holders of its common stock, Marcoff Corporation records the following
journal entry:
a. Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
Investment in Stock of Invicta Corporation . . . . . . . . . . . . . . . . . . 9,000
b. Investment in Stock of Invicta Corporation . . . . . . . . . . . . . . . 9,000
Equity in Earnings of Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
c. Equity in Earnings of Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
Investment in Stock of Invicta Corporation . . . . . . . . . . . . . . . . . 9,000
d. Investment in Stock of Invicta Corporation . . . . . . . . . . . . . . . 9,000
Investment Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
e. Investment in Stock of Invicta Corporation . . . . . . . . . . . . . . . 9,000
Investment Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
A
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