In a situation where the investor exercises significant influence - 12318

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9. In a situation where the investor exercises significant influence over the investee, which of the following entries is not actually posted to the books of the investor?
1) Debit to the Investment account, and a Credit to the Equity in Investee Income account.
2) Debit to Cash (for dividends received from the investee), and a Credit to Dividend Revenue.
3) Debit to Cash (for dividends received from the investee), and a Credit to the Investment account. (Points : 1)
        Entries 1 and 2
        Entries 2 and 3
        Entry 1 only
        Entry 2 only
        Entry 3 only

Solution Description

9. In a situation where the investor exercises significant influence over the investee, which of the following entries is not actually posted to the books of the inv