On January 1, 2019, X Inc. purchased 25% of the voting shares of Y Inc. for $100,000. The investment is reported using the equity method, as X has significant influence

On January 1, 2019, X Inc. purchased 25% of the voting shares of Y Inc. for $100,000. The investment is reported using the equity method, as X has significant influence over Y. Y’s net income and declared dividends for the following three years are as follows:
Which of the following journal entries would have to be made to record X’s share of Y’s dividends paid for 2021?
A.
B.
C.
D. No entry requireD.Share of dividends = $60,000  25% = $15,000.

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