What is journal entry to record Pepsi share of Sprite

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Question - On January 1. 2017, Cool Inc. (Pepsi) purchased 15% of the voting shares of Sprite Inc. (Sprite) for $87,000. Pepsi does not have significant influence over Sprite. Sprite' net income and declared dividends for the following three years are as follows:

 

Dividends

Net Income

2019

$10,000

$70,000

2018

$70.000

$80,000

2017

$50,000

$20,000

Required - What is the journal entry to record Pepsi's share of Sprite's dividends for 2017?

Reference no: EM133129875

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