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Glitter Services Inc

Question 98

Multiple Choice

Glitter Services Inc.pays $700,000 for 100,000 shares to acquire 30% of voting stock of Grey Investments Inc.on January 5,2016.Grey Investments Inc.declares and pays a cash dividend of $1.4 per share on June 14,2016.Which of the following is the correct journal entry for the transaction on June 14,2016?


A) Glitter Services Inc.pays $700,000 for 100,000 shares to acquire 30% of voting stock of Grey Investments Inc.on January 5,2016.Grey Investments Inc.declares and pays a cash dividend of $1.4 per share on June 14,2016.Which of the following is the correct journal entry for the transaction on June 14,2016? A)    B)    C)    D)
B) Glitter Services Inc.pays $700,000 for 100,000 shares to acquire 30% of voting stock of Grey Investments Inc.on January 5,2016.Grey Investments Inc.declares and pays a cash dividend of $1.4 per share on June 14,2016.Which of the following is the correct journal entry for the transaction on June 14,2016? A)    B)    C)    D)
C) Glitter Services Inc.pays $700,000 for 100,000 shares to acquire 30% of voting stock of Grey Investments Inc.on January 5,2016.Grey Investments Inc.declares and pays a cash dividend of $1.4 per share on June 14,2016.Which of the following is the correct journal entry for the transaction on June 14,2016? A)    B)    C)    D)
D) Glitter Services Inc.pays $700,000 for 100,000 shares to acquire 30% of voting stock of Grey Investments Inc.on January 5,2016.Grey Investments Inc.declares and pays a cash dividend of $1.4 per share on June 14,2016.Which of the following is the correct journal entry for the transaction on June 14,2016? A)    B)    C)    D)

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