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Question
Zach Company owns 45% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Corporation reported a $20,000 net loss. Zach Company's entry would include a
a. credit to Cash for $9,000
b. debit to the investment account for $9,000
c. credit to the investment account for $9,000
d. credit to a loss account for $9,000
Answer
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