On January 1, 2020, Hemingway Co

question 54

Multiple Choice

On January 1, 2020, Hemingway Co. acquired all of the common stock of Crotec Corp. For 2020, Crotec earned net income of $375,000 and paid dividends of $200,000. Amortization of the patent allocation that was included in the acquisition was $8,000.How much difference would there have been in Hemingway's income with regard to the effect of the investment, between using the equity method or using the partial equity method of internal recordkeeping?

• A) $8,000.
• B) $167,000.
• C) $175,000.
• D) $200,000.
• E) $375,000.

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Definitions:

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Alexander Luria

A Soviet neuropsychologist known for his work on the development of cognitive psychology, brain injury, and the study of human consciousness.

Observations

The action or process of closely monitoring or noticing something or someone, often used as a method for collecting data in research.

Brain Parts

Components of the brain, such as the cerebrum, cerebellum, and brainstem, each responsible for different functions and processes.