Jeff Company Purchased, as a Long-Term Investment, Common Stock of Garcia

question 68

Multiple Choice

Jeff Company purchased, as a long-term investment, common stock of Garcia Company.During the current year, Garcia Company earned $4,000,000 and paid dividends of $1,000,000.Assume that Jeff Company owns 10% of the outstanding shares of Garcia Company.Garcia Company's net income will affect Jeff Company by _____.

• A)increasing cash and investments by $400,000
• B)increasing stockholders' equity and investments by $400,000
• C)increasing cash and stockholders' equity by $400,000
• D)none of these answers is correct

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Definitions:

Simon LeVay

A neuroscientist known for his research on brain structure differences between homosexual and heterosexual individuals.

Challenging Goal

A target or objective that is ambitious and requires effort and perseverance to achieve.

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Strict or unchangeable due dates by which tasks or objectives must be completed.

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