Hope Company bought 30% of Faith Corporation in 2020, and us…
Hope Company bought 30% of Faith Corporation in 2020, and uses the equity method to account for the investment. Suppose that on the receipt of dividends, Faith made the entry: Cash $100,000 Investment in Faith Corp. $100,000 I think that it is the correct entry to make when an equity method investor receives dividends. What is the effect on Assets and Shareholder’s equity of this journal entry? Assets Shareholders’ equityA. increase $100,000 increase $100,000B. increase $100,000 decrease $100,000C. decrease $100,000 decrease $100,000D. no change no change