Question

If a company owns 25% of the voting stock of Pink Co. and can exercise significant influence, dividends received will be

A. credited to Equity Investments -Pink Co.
B. credited to Dividend Revenue.
C. debited to Equity Investments- Pink Co.
D. credited to Cash.

Answer 1

Dividends received will be credited to Equity Investments - Pink Co.

Step-by-step explanation:

If a company owns 25% of the voting stock of Pink Co. and can exercise significant influence, dividends received will be credited to Equity Investments - Pink Co.