Clinton Ltd acquired 20% of and significant influence over the operations of Lee Ltd on 1 July 20X0. At that date, the equity of Lee Ltd comprised retained profits of

Clinton Ltd acquired 20% of and significant influence over the operations of Lee Ltd on 1 July 20X0. At that date, the equity of Lee Ltd comprised retained profits of $800,000 and paid up capital of $3,000,000. During the financial year ended 30 June 20X1, Lee Ltd paid a final dividend of $300,000 out of profits earned in the year ended 30 June 20X1. Clinton Ltd does not control any entities. is the journal entry to record these dividends for Clinton Ltd for the year ended 30 June 20X1 under equity accounting? Note that the reclassification method/approach is used. Select one: A. Accounts            Debit $         Credit $ Bank                300,000 Dividend revenue                     300,000 … B. Accounts Debit $ Credit $ Bank                              60,000 Investment in Lee                    60,000 … C. Accounts Debit $ Credit $ Bank               60,000 Dividend revenue                    60,000 … D. Accounts Debit $ Credit $ Bank               300,000 Investment in Lee                   300,000

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