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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?
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