An Investor Owns 32% of the Outstanding Common Stock of Leshan

Multiple Choice

An investor owns 32% of the outstanding common stock of Leshan Company.Leshan Company reports net income of $90,000 for the current year.Which journal entry should the investor prepare?

A) debit Cash for $28,800 and credit Equity-method Investment Revenue for $28,800
B) debit Cash for $28,800 and credit Equity-method Investment for $28,800
C) debit Equity-method Investment for $28,800 and credit Equity-method Investment Revenue for $28,800
D) debit Equity-method Investment Revenue for $28,800 and credit Equity-method Investment for $28,800