Glitter Services Pays $700,000 for 100,000 Shares to Acquire 30

question 58

Multiple Choice

Glitter Services pays $700,000 for 100,000 shares to acquire 30% of voting stock of Grey Investments on January 5, 2016. Grey Investments declares and pays a cash dividend of $1.4 per share on June 14, 2016. Which of the following is the correct journal entry for the transaction on June 14, 2016?

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Definitions:

Oil Droplets

Tiny globules of oil, which can be found suspended in various colloids, including biological cells or in culinary emulsions.

Root System

The underground portion of a plant that anchors it in the soil and absorbs water and dissolved minerals. Compare with shoot system.

Dissolved Nutrients

Nutrients that are in a dissolved state in water and are readily available for uptake by plants and microorganisms.

Atmospheric Carbon Dioxide

A naturally occurring greenhouse gas in Earth's atmosphere, responsible for absorbing and emitting infrared radiation, significantly impacting the planet's climate.