Acme Company owns 35% of Superior Company. Superior Company declared and paid $33,000 cash dividends for the year. Acme Company's journal entry to record the dividends includes a:

Question

Quizplus · Accepted Answer

Acme Company owns 35% of Superior Company, so Acme Company's share of the dividends is $33,000 * 35% = $11,550. The journal entry to record the dividends includes a credit to Equity-method Investments for $11,550.

Acme Company Owns 35% of Superior Company