If Barton Company Purchases a Minority Active Interest in Laramie

question 1

Multiple Choice

If Barton Company purchases a minority active interest in Laramie Company for $150,000, Barton will make which of the following entries to record the purchase using the equity method?

• A)Equity in Laramie Company 150,000 Cash 150,000
• B)Investment in Laramie Company 150,000 Cash 150,000
• C)Deferred Revenue--Laramie Company 150,000 Cash 150,000
• D)Common Stock--Laramie Company 150,000 Cash 150,000
• E)Paid-in-Capital--Laramie Company 150,000 Cash 150,000

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