Wolverine Corporation Owns 27% of Buckeye Corporation

Multiple Choice

Wolverine Corporation owns 27% of Buckeye Corporation.Net income for Buckeye for the year is $300,000.The journal entry prepared by Wolverine Corporation is:

A) debit Equity-method Investment for $81,000 and credit Cash for $81,000.
B) debit Equity-method Investment for $81,000 and credit Equity-Method Investment Revenue for $81,000.
C) debit Cash for $81,000 and credit Equity-method Investment for $81,000.
D) debit Equity-method Investment for $300,000 and credit Equity-method Investment Revenue for $300,000.