An investor owns 28% of the outstanding common stock of Stokes Corporation.Stokes Corporation declares and pays a $60,000 dividend.Which journal entry should the investor prepare?
A) debit Equity-method Investment for $16,800 and credit Cash for $16,800
B) debit Cash for $16,800 and credit Equity-method Investment for $16,800
C) debit Cash for $16,800 and credit Dividend Revenue for $16,800
D) debit Dividend Receivable for $16,800 and credit Dividend Revenue for $16,800
Correct Answer:
Verified
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