Use the Following Information for Questions

question 44

Multiple Choice

Use the following information for questions.
Red Corp.owns 3,000 of the 10,000 outstanding common shares of Grey Corp.and exercises significant influence.During 2017, Grey reported net income of $120,000 and paid total cash dividends of $40,000.
-If the beginning 2017 balance in the Investment In Grey Corp.account was $180,000, the balance at December 31, 2017 should be

• A)$260,000.
• B)$204,000.
• C)$180,000.
• D)$132,000.

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Definitions:

Persuasive Precedents

Judicial decisions from other jurisdictions that are not binding but may inform and influence a court's decision in a similar case.

Binding Precedents

Legal decisions or rulings that must be followed by lower courts within the same jurisdiction in future cases with similar circumstances.

Social Security Administration

A U.S. government agency responsible for administering social security, a social insurance program consisting of retirement, disability, and survivor benefits.

Equal Protection Clause

Part of the Fourteenth Amendment to the U.S. Constitution, requiring states to provide equal protection under the law to all persons.