Zach Company Owns 40% of the Voting Stock of Tomas

question 24

Multiple Choice

Zach Company owns 40% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Corporation reported a $20,000 net loss. Zach Corporation's entry would include a

• A) Credit to cash for $8,000
• B) Debit to the investment account for $8,000
• C) Credit to the investment account for $8,000
• D) Debit to a loss account for $8,000