Power Generation Corp

question 33

Multiple Choice

Power Generation Corp. owns 38% of Electric Limited. Net income for Electric Limited for the year ending December 31, 2020, is $450,000. The journal entry prepared by Power Generation Corp. on December 31, 2020, includes a:

• A) credit to Long-Term Investment for $171,000
• B) debit to Cash for $171,000
• C) debit to Long-Term Investment for $171,000
• D) debit to Long-Term Investment for $450,000