Assume that Oslo Corp. acquires 30% of Celdon Corp. for $360,000 on January 1, 2017. If Celdon declares and pays $120,000 in total dividends on February 14th, the journal entry would include a credit to
A) Dividend Revenue for $120,000.
B) Dividend Revenue for $36,000.
C) Stock Investments for $36,000.
D) No entry is necessary.

Question

Quizplus · Accepted Answer

Oslo Corp. owns 30% of Celdon Corp., so it would receive 30% of the dividends, which is $36,000. The entry would include a credit to Stock Investments for $36,000, reducing the investment account.

Assume That Oslo Corp