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Pan Services, Inc. owns 35% of voting stock of Grey Investments, Inc. During the year 2017, Grey Investments, Inc. earned profits of $310,000. Under the equity method, which of the following journal entries will Pan Services record?
Interest Expense
The cost incurred by an entity for borrowed funds, typically presented as an expense on the income statement.
Amortization
The process of spreading the cost of an intangible asset over its useful life.
Accrued Interest
Accrued Interest is the interest that has accumulated on a loan or bond since the last interest payment was made but has not yet been paid out.
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