For instructor use only h 17 test bank for financial

FOR INSTRUCTOR USE ONLY
H-17

Test Bank for Financial Accounting: Tools for Business Decision Making, Eighth Edition
76. Buford Industries owns 40% of Appalachian Company. For the current year, Appalachian
reports net income of $250,000 and declares and pays a $70,000 cash dividend. Which
of the following correctly presents the journal entries to record Buford’s equity in
Appalachian net income and the receipt of dividends from Appalachian?
77. On January 1, 2022, Chic Corp. paid $750,000 for 100,000 shares of Toto Company's
common stock, which represents 25% of Toto’s outstanding common stock. Toto reported
income of $300,000 and paid cash dividends of $80,000 during 2022 Chic should report
the investment in Toto Company on its December 31, 2022, balance sheet at
78. McComb Inc. earns $1,350,000 and pays cash dividends for $450,000 during 2022. SFX
Corporation owns 70,000 of the 210,000 outstanding shares of McComb. What amount
should SFX show in the investment account at December 31, 2022 if the beginning of the
year balance in the account was $150,000?