Use the Following Information for Questions

question 49

Multiple Choice

Use the following information for questions
Hat Inc.purchased 10,000 shares of Cat Co.'s common shares for $10 a share on January 1.During the year, Cat paid a $50,000 cash dividend and earned $300,000 net income.On December 31, the market value of Cat's stock was $8 a share.The investment is to be held as a long-term investment and the decline in value is not considered permanent.
-Assuming Hat owned 25 percent of Cat's outstanding shares; Hat would report the net carrying value of their investment as:

• A)$100,000
• B)$162,500
• C)$175,000
• D)$187,500

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Definitions:

Public Perceptions

The collective opinions or beliefs of the general population about issues or subjects.

Economic Issues

Concerns related to the financial and monetary aspects of society, including unemployment, inflation, taxation, and financial regulation.

Foreign Policy Issues

Concerns and strategies that a country develops in relation to other nations regarding defense, trade, diplomacy, and more.

Political Socialization

The process through which individuals acquire their political beliefs and values, often influenced by family, education, and media.