Use the Following Information to Answer Questions

question 4

Multiple Choice

Use the following information to answer questions
Heart Company has a total of 750,000 shares issued.Diamonds Inc.purchases 150,000 of Heart shares for $10 \ share on January 1, 2011.On December 31, 2011, Heart has a net income of $125,000 and Heart shares are trading for $9.50 \ share.
-If this is a strategic investment, Diamond must making the following entry on December 31:

• A)dr.Investment in shares, cr.OCI
• B)dr.OCI, cr.Investment in shares
• C)dr.Cash, cr.Investment in shares
• D)dr.Investment in shares, cr.Equity in Earnings of Investee

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Definitions:

Parenteral Nutrition

A method of feeding a person intravenously, bypassing the usual process of eating and digestion.

Hypoglycemia

A condition characterized by abnormally low blood sugar levels, which can cause symptoms such as dizziness, sweating, and confusion.

Pharmacy

A field of health science that links medical science with chemistry and is charged with the discovery, production, disposal, safe and effective use, and control of medications and drugs.

Complication

An unforeseen problem or condition that arises during the course of a disease or after a procedure, making the situation worse.