Use the Following Information for Questions 108 and 109

question 139

Multiple Choice

Use the following information for questions 108 and 109.
Tracy Company owns 4,000 of the 10,000 outstanding shares of Penn Corporation common stock. During 2015, Penn earns $300,000 and pays cash dividends of $100,000.
-Tracy should report investment revenue for 2015 of

• A) $40,000.
• B) $80,000.
• C) $100,000.
• D) $120,000.

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Definitions:

Specialized Areas

Specific segments or fields that focus on a particular aspect of knowledge or activity, requiring advanced skills or knowledge.

Savant Performance

Exceptional abilities in a specific area, such as arithmetic or memory, often noted in individuals with autism or other developmental disorders.

Criterion-Related Validity

The extent to which a test's scores actually predict or correlate with a specific criterion of interest.

Predictive Reliability

The degree to which a measure or test consistently and accurately predicts future outcomes or behaviors.