Abler Company Owns 40% of Saparo Company

question 5

Multiple Choice

Abler Company owns 40% of Saparo Company. Saparo Company paid $40,000 cash dividends for the year. Abler Company's journal entry to record the dividends includes a:

• A)credit to Dividend Revenue for $16,000.
• B)credit to Dividend Revenue for $40,000.
• C)credit to Long-Term Investments for $16,000.
• D)credit to Long-Term Investments for $40,000.

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