Question 6 hat effect did this dividend have on PS 2016 fina

Question 6 hat effect did this dividend have on PS 2016 financial statements? P, inc owns 40% of the outstanding stock of s company. During 2016, p received a S40 00 cash dividend from SL O A Increased income. O B. Decreased total assets C. Increased total assets D. Decreased investment account

Solution

Answer

D ) decreased investment account

in the equity method the company has to influence over and another p company owns 40% of out standing stock of s company owns 40% of the ourstanding stock of s company because the p company has influence over s company