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.

---

Definitions:

Armed Forces

Military forces established by a nation to defend its interests and maintain security.

War Production Board

A U.S. government agency established during World War II to coordinate the production of war materials and supplies.

Allocating Resources

The process of distributing available resources, such as finances, materials, and labor, for specific tasks or projects to achieve desired objectives.

Independent Factories

Manufacturing facilities that operate autonomously, not as part of larger conglomerates or corporations, often characterized by specialized production.