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Aurum Services Acquired 100,000 Shares of Gamma Metals on January

question 121

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Aurum Services acquired 100,000 shares of Gamma Metals on January 1, 2015. Gamma declares a cash dividend of $0.25 per share on February 15, 2015 and pays the cash dividend on March 2, 2015. With the current investment, Aurum Services holds 8% of Gamma. Which of the following will be the correct journal entry for the day when the dividend payment is made (March 2, 2015) ?


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