At the Beginning of 2013, Zed Ltd $\begin{array} { | c | c | } \hline \text { DR Cash } & 12,000 \\\hline \text { CR Investment in Pine } & 12,000 \\\hline\end{array}$

question 19

Multiple Choice

At the beginning of 2013, Zed Ltd. acquired 15% of the voting shares of Pine Co (a private company) for $150,000. Zed does not have any significant influence over Pine. Zed follows ASPE. In 2013, Pine earned net income of $70,000 and paid dividends of $40,000. In 2014, Pine earned net income of $80,000 and paid dividends of $100,000. At the end of 2014, what journal entry should Zed make to record the dividends from Pine?

• A)No entry is required
• B)
• \(\begin{array} { | c | c | }
• \hline \text { DR Cash } & 12,000 \\
• \hline \text { CR Investment in Pine } & 12,000 \\
• \hline
• \end{array}\)
• C)
• \(\begin{array} { | c | c | }
• \hline \text { DR Cash } & 15,000 \\
• \hline \text { CR Investment in Pine } & 15,000 \\
• \hline
• \end{array}\)
• D)
• \(\begin{array} { | c | c | }
• \hline \text { DR Cash } & 15,000 \\
• \hline \text { CR Dividend income } & 15,000 \\
• \hline
• \end{array}\)

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Definitions:

Nobel Prize

International awards given annually in several categories (e.g., peace, literature, physics) to recognize significant contributions or achievements.

IMF

The International Monetary Fund, an organization aimed at fostering global monetary cooperation, securing financial stability, and facilitating international trade.

Self-sufficient

The ability of an individual, household, or community to provide for all their essential needs without relying on external resources.

Specializes

Refers to the focus of a business, region, or economy on the production of a limited scope of goods or services to gain a greater degree of efficiency.