On January 1, 2025, Zoe Inc. purchased 12% of the voting sha…
On January 1, 2025, Zoe Inc. purchased 12% of the voting shares of Yeoman Inc. for $100,000. In that same year, Yeoman reported Net Income of $30,000 and Declared and Paid Dividends amounting to $60,000. Required: If Zoe reports its investment under the cost method, which of the following accounts would need to be journalized by Zoe to record its share of dividends received in 2025? Select ALL that apply.
Read DetailsPembina Co. acquires a 10% ownership in Athabasca Corp. for …
Pembina Co. acquires a 10% ownership in Athabasca Corp. for $1,000,000 with commission cost of $100,000. In the most recent reporting period, Athabasca recognizes $150,000 of net income and issues dividends of $45,000. Pembina Co. reports its investment under the cost method. Which statement(s) describes the application of the cost method. Select ALL that apply.
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