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Assume Verizon has a 30% owned investee. Also, assume that the investee paid Verizon $8M in
dividends and Verizon recorded the following journal entry: Cash $11M Dividend Income $11M
What would be the effect on the following items on Verizons financials (overstated, understated, or
no effect): Circle one: a) Working Capital OS US NE b) Net Income OS US NE c) Total Assets OS
US NE d) Retained Earnings OS US NE

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Assume Verizon has a 30 owned investee Also assume that t.pdf

  • 1. Assume Verizon has a 30% owned investee. Also, assume that the investee paid Verizon $8M in dividends and Verizon recorded the following journal entry: Cash $11M Dividend Income $11M What would be the effect on the following items on Verizons financials (overstated, understated, or no effect): Circle one: a) Working Capital OS US NE b) Net Income OS US NE c) Total Assets OS US NE d) Retained Earnings OS US NE