Zach Company owns 45% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Corporation reported a $20,000 net loss.
Zach Company's entry would include a:
a. debit to the investment account for $9,000
b. credit to cash for $9,000
c. credit to a loss account for $9,000
d. credit to the investment account for $9,000
Answers: 1
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