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:

Subsidy

A financial contribution provided by the government or another body to support an industry, business, or individual.

Earned Income Tax Credit

A refundable tax credit for low- to moderate-income working individuals and families, aimed at reducing poverty and encouraging work.

Working Poor

Individuals who are employed but still live below the poverty line due to low wages and inadequate employment benefits.

Minimum-wage Laws

Legislation that sets the lowest hourly rate of pay that an employer can legally pay their workers, intended to protect workers from unduly low pay.