Mouns Company Owns 30% Interest in the Stock of Darian

question 176

Multiple Choice

Mouns Company owns 30% interest in the stock of Darian Corporation. During the year, Darian pays $20,000 in dividends to Mouns, and reports $100,000 in net income. Mouns Company's investment in Darian will increase Mouns' net income by

• A) $15,000.
• B) $30,000.
• C) $24,000.
• D) $6,000.

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Definitions:

Embolus

A blood clot, air bubble, piece of fatty deposit, or other object that has been carried in the bloodstream to lodge in a vessel and cause an embolism.

Prostacyclin

A potent vasodilator and inhibitor of platelet aggregation produced by the endothelial cells of blood vessels.

Fibrinogen

A soluble plasma protein that is converted into fibrin during blood clotting, playing a critical role in wound healing.

Fibrin

A protein formed during blood clotting that is essential for wound healing, creating a fibrous mesh that impedes blood flow.