5) Peter Corporation pays $500,000 to acquire 40% of the equity securities of Ve

Question

5) Peter Corporation pays $500,000 to acquire 40% of the equity securities of Venkat Technologies on May 5, 2015. Which of the following will be included in the journal entry to record this transaction? A) Debit Long-term Investments—Trading Investments $500,000. B) Debit Long-term Investments—Venkat Technologies $500,000. C) Debit Long-term Investments—Available-for-Sale $500,000. D) Credit Long-term Investments—Available-for-Sale $500,000. Can you please provide the computations on how you came to the answer. I am not getting the right calculations. :(

Explanation / Answer

B . Long term investments 500000

To Venkat Technologies 500000

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.