Ocean Corporation owns 30% of Woods Corp.for which it paid $5.5 million and uses the equity method to account for the investment.Woods Corp.paid stockholders a $100,000 dividend.Therefore,the Investment in Woods Corp.account will decrease by Ocean's $30,000 proportionate share of the Woods.Corp.dividend.
Correct Answer:
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Q1: Management must have the intent and ability
Q2: An unrealized holding gain is reported within
Q4: Under the equity method,dividends received are recognized
Q5: A decline in the fair value of
Q6: The equity investment portfolio is adjusted to
Q7: For all periods in which a debt
Q8: An increase in the fair value of
Q9: An unrealized holding loss is reported on
Q10: An unrealized holding gain is reported on
Q11: Passive debt investments other than held-to-maturity investments
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