What entry will the company make to record the dividends

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Question - Posthorn Corporation acquired 20,000 of the 100,000 outstanding common shares of Stamp Company on January 1, 2019, for a cash consideration of $200,000. During 2019, Stamp Company had net income of $120,000 and paid dividends of $80,000. At the end of 2019, shares of Stamp Company were trading for $11 each.

If Posthorn Corporation accounts for its investment in Stamp Company at fair value through profit or loss (FVTPL), what entry will the company make to record the dividends received from Stamp Company for 2019?

Reference no: EM132996984

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