Fey Corporation uses the equity method of accounting for its investment in a 30%-owned investee that earned $56,000 and paid $18,000 in dividends.
As a result, Fey Corporation made the following entries:
Equity Investment16,800
Equity Income16,800
Cash5,400
Dividend Revenue5,400
What effect will these entries have on Fey Corporation's balance sheet?
A. Investment understated; retained earnings understated
B. Investment overstated; retained earnings understated
C. Investment overstated; retained earnings overstated
D. No effect
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Fey Corporation uses the equity method of accounting for its investment in a 30%-owned investee that earned $56,000 and paid $18,000 in ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death? A. Tenants in common B. Tenancy by the entirety C. Joint tenants with the right of survivorship D.
Answers (1)
In his company's most recent downsizing, Emil was one of only five workers in his department who was not let go. Emil's employer has reduced its workforce 6 times over the past 2 years.
Answers (1)
Suppose you are looking at the 2006 results of how the Echo generation classified specified items as either luxuries or necessities. Do you expect the results to reflect how the Eche generation would classify items in 2020? Explain. 1.
Answers (1)
Which of the following contracts would not have to be in writing under the old UCC? a contract for the sale of an easement for $450 a contract for consulting services for $10,000 over the next 90 days a three-year advertising contract a contract for
Answers (1)
In thinking about target markets for nonprofit organizations, which of the following is true? a. Customers in a nonprofit's target market may be reluctant or strongly opposed to receiving their services. b.
Answers (1)
New Questions in Business
Transfer payments are not included in gdp calculation because these are
Answers (1)
In which year were tobacco commercials banned from network television in the united states?
No Answers
Maggie's manager notices that she exhibits an external locus of control when she speaks about her work. Her manager should Group of answer choices a. direct Maggie toward a job with more autonomy. b.
Answers (1)
Consider this argument: "The kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. If the SWAT team assaults the farmhouse, the hostages could be killed.
Answers (1)
Rent seeking is an attempt to A. use the government for individual benefit at the expense of others. Regulatory capture is an example of this, where a regulatory agency makes decisions benefiting the firm being regulated. B.
Answers (1)