Zach Company owns 45% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Corporationreported a $11,100 net loss. Zach Company's entry would include aOa. credit to cash for $4,995Ob. credit to the investment account for $4,995Oc. credit to a loss account for $4,995Od. debit to the investment account for $4,995K PreviousNext3:23 PM53°F Sunny ^12/14/2021a.近

Equity method is used to value a company's investment in another company. Net profit of the…

Zach Company owns 45% of the voting stock of Tomas C reported a $11,100 net loss. Zach Company's entry woule Oa. credit to cash for $4,995 Ob. credit to the investment account for $4,995 Oc. credit to a loss account for $4,995 Od. debit to the investment account for $4,995

Zach Company owns 45% of the voting stock of Tomas C reported a $11,100 net loss. Zach Company's entry woule Oa. credit to cash for $4,995 Ob. credit to the investment account for $4,995 Oc. credit to a loss account for $4,995 Od. debit to the investment account for $4,995

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Zach Company owns 45% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Corporation
reported a $11,100 net loss. Zach Company's entry would include a
Oa. credit to cash for $4,995
Ob. credit to the investment account for $4,995
Oc. credit to a loss account for $4,995
Od. debit to the investment account for $4,995
K Previous
Next
3:23 PM
53°F Sunny ^
12/14/2021
a.
近

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