Company P Acquired 30% of Company S's Common Stock on January

question 20

Multiple Choice

Company P acquired 30% of Company S's common stock on January 1, 20X8, for $100,000.Company P's 30% interest constitutes significant influence.There is no excess of cost over book value.During 20X8, Company S earned $40,000 and paid dividends of $25,000.During 20X9, Company S's $50,000 income was earned evenly, and the company paid dividends of $15,000 on April 1 and $15,000 on October 1.On July 1, 20X9, Company P sold half of its interest in Company S for $66,000 cash; thus, Company P no longer had significant influence The gain on the sale of the investment in Company P's 20X9 income statement should be ____.

• A)​$16,000
• B)​$13,700
• C)​$12,250
• D)​$10,000

Recognize the importance and impact of precedent-setting court cases on tort law.

Comprehend the legislative framework around privacy and personal information protection.

Analyze the legal responsibilities of businesses in service industries and their potential liability.

Understand the concept of vicarious liability in workplace and customer altercations.

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Definitions:

Mediation

A process in which a neutral third party helps disputing parties reach a mutually acceptable agreement.

Process Consultation

A form of consulting where the consultant focuses on the processes of an organization, including communication and decision-making, to improve its effectiveness.

Chilling Effect

A situation where the threat of legal action or other potential repercussions suppresses lawful speech or actions.

Binding Arbitration

A type of arbitration where the decision made by the arbitrator is legally enforceable and cannot be appealed.