Micron owns 30% of JVT Corp's common shares and has significant influence over JVT's operations. Micron...
Micron owns 30% of JVT Corp's common shares and has significant influence over JVT's operations. Micron receives $6,500 in dividends from JVT. The entry to record receipt of the dividends includes a debit to Cash for $6,500 and a credit to Investment in JVT Shares for $6,500.
True or false
Homework Answers
TRUE
.
As Micron can exert significant influence over JVT's operations, equity method is used for the investment.
The entry would be
| Cash | xxx | |
| Equity investment - JVT | xxx |
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Micron owns 30% of JVT Corp's common shares and has significant
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