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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

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 record
Barado'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 $24,000

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