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:

Concrete Operational

A stage in Piaget's theory of cognitive development during which children gain the ability to think logically about concrete events.

Decentered

In developmental psychology, a term referring to the ability to take multiple aspects of a situation into account, seeing things from more than one perspective.

Memory Strategy

Techniques used to enhance memory retention, recall, or the encoding of information.

Elaboration

The process of adding more details or expanding on an idea, theory, or concept to provide a deeper or clearer understanding.