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Business, 18.08.2021 18:20 Calebmf9195

At the start of 2071 Cowboy Corp. purchased 25% of Bebop Tech Inc. for $45 million. At the time of purchase, the carrying value of Bebop Tech's net assets was $75 million. The fair value of Bebop Tech's depreciable assets (5 year useful life remaining) was $25 million in excess of their book value. For this year, Bebop Tech reported a net income of $50 million and declared and paid $25 million in dividends. Which of the following journal entries accounts for the dividend received by Cowboy Corp in 2017? a.
Debit Cash $25,000,000
Credit Investment in Bebop Tech Inc $25,000,000

b.
Debit Cash $6,250,000
Credit Investment in Bebop Tech Inc $6,250,000

c.
Debit Cash $25,000,000
Credit Dividend Revenue $25,000,000

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At the start of 2071 Cowboy Corp. purchased 25% of Bebop Tech Inc. for $45 million. At the time of p...

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