Barado, Inc. owns 30% of the outstanding shares of Tako Inc. common stock. During 2021,Tako earns $270,000 and pays cash dividends of $80,000. What is the journal entry to recordBarado's receipt of dividends from Tako, Inc.?O DR Equity Investment $24,000; CR Cash $24,000O DR Cash $24,000; CR Dividend Income $24,000O DR Cash $24,000; CR Equity Investment $24,000O DR Cash $24,000; CR Investment Income $24,000

Lets understand the basics.When one entity have more than 20% of holding in another entity then both…

arado, Inc. owns 30% of the outstanding shares of Tako Inc. common stock. During 2021, ako earns $270,000 and pays cash dividends of $80,000. What is the journal entry to recom arado's receipt of dividends from Tako, Inc.? O DR Equity Investment $24,000; CR Cash $24,000 O DR Cash $24,000; CR Dividend Income $24,000 O DR Cash $24,000; CR Equity Investment $24,000 O DR Cash $24,000; CR Investment Income $34 000

arado, Inc. owns 30% of the outstanding shares of Tako Inc. common stock. During 2021, ako earns $270,000 and pays cash dividends of $80,000. What is the journal entry to recom arado's receipt of dividends from Tako, Inc.? O DR Equity Investment $24,000; CR Cash $24,000 O DR Cash $24,000; CR Dividend Income $24,000 O DR Cash $24,000; CR Equity Investment $24,000 O DR Cash $24,000; CR Investment Income $34 000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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