Assume that Oslo Corp.acquires 30% of Celdon Corp.for $360,000 on January 1, 2022.If Celdon declares and pays $120,000 in total dividends on February 14th, the journal entry would include a credit to

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When an investor owns 20% to 50% of another company, the equity method is used. Under this method, dividends received are not recorded as dividend revenue but as a reduction in the investment account. Since Oslo Corp. owns 30% of Celdon, it would record a credit to Stock Investments for 30% of the dividends, which is $36,000.

Assume That Oslo Corp