Photo Finish Corporation Bought a 40% Interest in Click-It Corporation's

question 74

Multiple Choice

Photo Finish Corporation bought a 40% interest in Click-It Corporation's $1 par value voting common stock on March 31,2019.On December 31,2019,Click-It paid a $1 million cash dividend declared earlier in 2019,and reported net income for the year ended 2019 of $10 million.On December 31,2019,Click-It's stock was trading at $11.50 per share. What effect will the dividend have on the Photo Finish financial statements?

• A)It would increase cash and increase equity in investee earnings.
• B)It would increase cash and decrease the investment account.
• C)It would increase cash and increase net unrealized gains/losses.
• D)It would increase cash and increase the investment account.

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Definitions:

Genuineness

The quality of being open, honest, and sincere in one’s interactions, characterized by a real and tangible expression of one’s feelings and thoughts.

Orientation Stage

The initial phase in a process or relationship where individuals get familiar with tasks, environments, or each other.

Nurse-Patient Relationship

The professional, therapeutic connection and interaction between nurses and their patients.

Rapport

Rapport is a positive, mutual connection or relationship characterized by trust, empathy, and understanding that is developed between people.