What is the correct entry to recognise the equity of Dragon Ltd in Lagoon Industries when Lagoon records a profit of $85 000 and Dragon holds 35% of Lagoon's ordinary shares?
A) Debit Investment in Associates and Joint Ventures $29,750 Credit Share of Profit of Associates and Joint Ventures $29,750
B) Debit Investment in Associate and Joint Ventures $85 000 Credit Retained Earnings $85 000.
C) Debit Investment in Associates and Joint Ventures $29 500 Credit Retained Earnings $29 500.
D) None of the above.
Correct Answer:
Verified
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