Company J Has a Share Investment (Owns 60% of the Shares

question 5

Multiple Choice

Company J has a share investment (owns 60% of the shares, purchased in 20X1) and controls Company T, with a carrying amount of $200 000 at year end 20X4.Company T reports no increase in owner's equity between 20X0 and 20X5 but for the year ended 20X5 pays a cash dividend of $60 000, of which Company J receives $36 000.Which journal entry will Company J process in respect of this investment, assuming that AASB 127.38A is in effect during the period?

• A)Debit to cash, credit to investment, $36 000
• B)Debit to investment in associate, credit to share of associate's profit or loss, $36 000
• C)Debit to cash, credit to dividend revenue, $36 000
• D)Debit to investment, credit to dividend revenue, $36 000

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Definitions:

Confidence Interval

A statistical range, derived from sample data, that is likely to contain the true population parameter with a specified level of confidence.

Sample Size

The number of observations or data points collected in a sample.

Variable

An element, feature, or factor that is liable to vary or change.

Confidence Interval

A gamut of values, arising from sample statistic evaluation, with a high likelihood of encompassing the value of a mysterious population parameter.