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The B Company acquires 35 percent of Y Company's common stock for $200,000 at the...

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Accounting

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The B Company acquires 35 percent of Y Company's common stock for $200,000 at the beginning of the year, thereby acquiring significant influence over Y Cornpany. Y reports $100,000 in net income for the year, and pays dividends amounting to $30,000.8 accounts for its investment in Y using the EQUITY METHOD. The journal entry recorded by B Company for its share of dividends paid by Y would include: A credit to Investment in Y Company Stock for $35.000 A credit to Investment in Y Company Stock for $10,500 A credit to Cash for $10,500 A debit to Cash for $35.000 Question 5 10 pts B Company acquires 35 percent of Y Company's common stock for $200,000 at the beginning the year, thereby acquiring significant influence over Y Company. Y reports $100,000 in net income for the year, and pays dividends amounting to $30,000. B accounts for its investment using the EQUITY METHOD. The carrying amount of B's investment in Y Company at the end of the year is: $235,000 $224,500

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