Bing Company Owns 30% Interest in the Stock of Yeti

question 9

Multiple Choice

Bing Company owns 30% interest in the stock of Yeti Corporation. During the year, Yeti pays $75,000 in dividends to Bing, and reports $400,000 in net income. Bing Company's investment in Yeti will increase Bing net income by

• A) $120,000.
• B) $97,500.
• C) $75,000.
• D) $22,500.

---

Definitions:

Bearing Endplay

The axial movement allowed between a bearing's components, crucial for managing thermal expansion and mechanical clearance.

Commercial Truck Wheel Ends

The assembly at the end of a truck's axle, including components like the wheel hub, bearings, and lug nuts, crucial for wheel attachment and rotation.

Seating At The Bead

The process of ensuring the edge of a tire is properly positioned against the rim of the wheel, securing the tire in place.

Metal Ring Inflation Aid

A tool or device used to help inflate and seat the bead of a tire onto the wheel rim using a metal ring.