If Barton Company purchases a minority active interest in Laramie Company for $150,000, Barton will make which of the following entries to record the purchase using the equity method?
A) Equity in Laramie Company 150,000 Cash 150,000
B) Investment in Laramie Company 150,000 Cash 150,000
C) Deferred Revenue--Laramie Company 150,000 Cash 150,000
D) Common Stock--Laramie Company 150,000 Cash 150,000
E) Paid-in-Capital--Laramie Company 150,000 Cash 150,000
Correct Answer:
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