Melvin Company applies the equity method to account for its investment in Lang Company.Lang reports income in excess of an extraordinary loss in 2009.Melvin acknowledges that it must separately disclose the extraordinary loss in consolidated financial statements.What entry would be made by Melvin Company to record Lang's results?
Selections B and C are the same.Change the credit for C to Retained Earnings
Christina -I agree with both comments here but we can't edit the picture.
The credit for D should be Investment in Lang

Question

Melvin Company applies the equity method to account for its investment in Lang Company.Lang reports income in excess of an extraordinary loss in 2009.Melvin acknowledges that it must separately disclose the extraordinary loss in consolidated financial statements.What entry would be made by Melvin Company to record Lang's results? 
Selections B and C are the same.Change the credit for C to Retained Earnings
Christina -I agree with both comments here but we can't edit the picture.
The credit for D should be Investment in Lang

Quizplus · Accepted Answer

The Answer of Melvin Company applies the equity method to account for its investment in Lang Company.Lang reports income in excess of an extraordinary loss in 2009.Melvin acknowledges that it must separately disclose the extraordinary loss in consolidated financial statements.What entry would be made by Melvin Company to record Lang's results? 
Selections B and C are the same.Change the credit for C to Retained Earnings
Christina -I agree with both comments here but we can't edit the picture.
The credit for D should be Investment in Lang

Melvin Company Applies the Equity Method to Account for Its