Use the Following Information to Answer Questions 26 and 27

question 16

Multiple Choice

Use the following information to answer questions 26 and 27
On January 1, 2014, Puma Corporation acquired 30 percent of Slume Company's stock for $150,000.On the acquisition date, Slume reported net assets of $450,000 valued at historical cost and $500,000 stated at fair value.The difference was due to the increased value of buildings with a remaining life of 10 years.During 2014 Slume reported net income of $25,000 and paid dividends of $10,000.Puma uses the equity method.
-What amount of investment income will be reported by Puma for the year 2014?

• A)$7,500
• B)$6,000
• C)$4,500
• D)$25,000

---

Definitions:

Control

In the context of experiments, it refers to a standard of comparison for checking or verifying the results of an experiment. In general, it means the power to influence or direct people's behavior or the course of events.

Diana Baumrind

A developmental psychologist best known for her research on parenting styles and their effects on children's development.

Parenting Styles

Describes the variations in the ways parents raise their children, traditionally categorized into authoritative, authoritarian, permissive, and uninvolved styles.

High On Control

A state or condition wherein an individual seeks or enjoys excessive power over situations or other people.