Zach Company Owns 45% of the Voting Stock of Tomas

question 55

Multiple Choice

Zach Company owns 45% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Corporation reported a $20,000 net loss. Zach Company's entry would include a

• A) credit to cash for $9,000
• B) debit to the investment account for $9,000
• C) credit to the investment account for $9,000
• D) credit to a loss account for $9,000

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Definitions:

Anticipate Events

The ability to foresee or predict future occurrences based on patterns, knowledge, or intuition.

Exact Replications

The process of exactly duplicating a study or experiment to verify its results.

Permeable

Characterized by the ability to allow substances or influences to pass through.

Neurotic Behavior

A range of psychological behaviors characterized by anxiety, phobias, or other mental health disturbances that are not psychotic.