Maurice Corporation invested $100,000 to acquire 20,000 shares of Delta Technolo

Question

Maurice Corporation invested $100,000 to acquire 20,000 shares of Delta Technologies, Inc. on March 1, 2017. Delta pays a cash dividend of $0.25 per share on July 2, 2018. The investment is classified as available-for-sale. Based on these two transactions, which of the following is true of the accounting equation as of July 2 2018? O A. Current assets in the balance sheet will remain unchanged. O B. Equity in the balance sheet will increase. ° C. Total liabilities in the balance sheet will increase. D. Total assets in the balance sheet will remain unchanged.

Explanation / Answer

Accounting equation :

So answer is b) Equity in the balance sheet will increase

Assets = Liabilities + Equity Cash 5000 Dividend revenue 5000

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