Buford Industries Owns 45% of Appalachian Company

question 259

Multiple Choice

Buford Industries owns 45% of Appalachian Company. For the current year, Appalachian reports net income of $250,000 and declares and pays a $70,000 cash dividend. Which of the following correctly presents the journal entries to record Buford's equity in Appalachian net income and the receipt of dividends from Appalachian?

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Definitions:

Mean

An average value that summarizes or represents the central tendency within a data set, determined by dividing the sum of all values by their count.

Mode

The value that appears most frequently in a data set.

Mean

The average of a set of numbers, calculated by summing the numbers and then dividing by the count of those numbers.

Median

The middle value in a data set when the values are arranged in ascending or descending order, effectively splitting the dataset into two halves.