Pravis Corporation Owns 30% of Kuster Corporation

question 129

Multiple Choice

Pravis Corporation owns 30% of Kuster Corporation.Pravis Corporation received $9,000 in cash dividends from Kuster Corporation.The entry to record receipt of these dividends is:

• A)Debit Cash,$9,000; credit Equity Method Investments,$9,000.
• B)Debt Equity Method Investment,$9,000; credit Cash,$9000.
• C)Debit Cash,$9,000; credit Interest Revenue,$9,000.
• D)Debit Unrealized Gain-Income,$9,000; credit Cash,$9,000.
• E)Debit Cash,$9,000; credit Dividend Revenue,$9,000.