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  3. on january 1, 2019, x inc. purchased 25% of the vo

On January 1, 2019, X Inc. purchased 25% of the voting shares of Inc. for...

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Accounting

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On January 1, 2019, X Inc. purchased 25% of the voting shares of 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: 2019 2020 Net Income $50,000 $70,000 $30,000 Dividends $20,000 $80,000 $60,000 2021 Which of the following journal entries would have to be made to record X's share of Y's dividends paid for 2021? Credit Debit $15,000 Cash Dividend income $15,000 Credit Cash Investment in Y Debit $15,000 $15,000 Debit $15.000 Credit Cash Dividend Income Investment in Y $12,5001 $2.500 No entry required

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