15. If a company reporting under ASPE decides to use the cost model to account for an investment in common shares, dividends received should be (a) credited to the investment account. (b) credited to the dividend income account. (c) debited to the investment account. (d) recorded only when 20% or more of the shares are owned.
15. If a company reporting under ASPE decides to use the cost model to account for an investment in common shares, dividends received should be (a) credited to the investment account. (b) credited to the dividend income account. (c) debited to the investment account. (d) recorded only when 20% or more of the shares are owned.
Chapter1: Financial Statements And Business Decisions
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please explain it without plagaiarisn
Transcribed Image Text:15.
If a
company reporting under ASPE decides to use the cost model to account for an
investment in common shares, dividends received should be
(a) credited to the investment account.
(b) credited to the dividend income account.
(c) debited to the investment account.
(d) recorded only when 20% or more of the shares are owned.
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