1. Dior Manufacturing purchased 100% of Venus, Inc. common stock for $900,000 when Venus had stockholders' equity consisting of $400,000 of common stock and $300,000 of retained earnings. In the consolidated balance sheet, Dior's investment in Venus will be shown at:

$0.

$900,000.

$700,000.

$100,000.

2. Under the equity method of accounting, the investment in common stock is initially recorded at cost and the investment account is subsequently:

credited for cash dividends received and debited for the investor's share of investee net income.

debited for the investor's share of investee net income.

debited for cash dividends received and credited for the investor's share of investee net income.

credited for cash dividends received.

3. Common Stock Dividends Distributable is reported in the balance sheet:

as an asset.

as an addition to retained earnings.

in paid-in capital as an addition to common stock issued.

as a liability.