Wolverine Corporation Owns 29% of Buckeye Corporation

Multiple Choice

Wolverine Corporation owns 29% of Buckeye Corporation.Net income for Buckeye for the year is $250,000.The journal entry prepared by Wolverine Corporation is:

A) debit Equity-Method Investment for $72,500 and credit Cash for $72,500.
B) debit Equity-Method Investment for $72,500 and credit Equity-Method Investment Revenue for $72,500.
C) debit Cash for $72,500 and credit Equity-Method Investment for $72,500.
D) debit Equity-Method Investment for $250,000 and credit Equity-Method Investment Revenue for $250,000.