Segmental Manufacturing Owns 35% of Glesson Corp

question 46

Multiple Choice

Segmental Manufacturing owns 35% of Glesson Corp.stock.Glesson pays a total of $47,000 in cash dividends for the period.Segmental's entry to record the dividend transaction would include a:

• A)Credit to Long-Term Investments for $16,450.
• B)Debit to Long-Term Investments for $16,450.
• C)Debit to Cash for $47,000.
• D)Credit to Cash for $16,450.
• E)Credit to Investment Revenue for $47,000.

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Definitions:

Corporation

A legal entity separated from its owners, providing limited liability protection, and capable of owning property, entering contracts, and being sued.

Islamic Middle East

A region predominantly influenced by Islamic culture, history, and religious practices, spanning countries in the Middle East where Islam is a major social and political force.

Western Europe

A region comprising the westerly countries of Europe, often including countries like France, Germany, the United Kingdom, Italy, Spain, and the Nordic countries.

Double Taxation

The incidence where income is taxed twice; this usually occurs when income is taxed at both the corporate level and personal level.