Wolverine Corporation owns 27% of Buckeye Corporation.Net income for Buckeye for the year is $300,000.The journal entry prepared by Wolverine Corporation is:
A)debit Equity-method Investment for $81,000 and credit Cash for $81,000.
B)debit Equity-method Investment for $81,000 and credit Equity-Method Investment Revenue for $81,000.
C)debit Cash for $81,000 and credit Equity-method Investment for $81,000.
D)debit Equity-method Investment for $300,000 and credit Equity-method Investment Revenue for $300,000.

Question

Quizplus · Accepted Answer

27% × $300,000 = $81,000

Wolverine Corporation Owns 27% of Buckeye Corporation