On January 1, 2017, the Leaf Company Acquired a 5

question 109

Multiple Choice

On January 1, 2017, the Leaf Company acquired a 5% interest in the Trunk Corporation through the purchase of 100,000 shares of Trunk's common stock for $640,000; the investment is recorded on Leaf's books as trading securities. During 2017, Trunk paid $40,000 in dividends and reported net income of $100,000. The market price of Trunk's common stock was $6.20 per share on December 31, 2017. Leaf should report the investment in the Trunk Corporation on its December 31, 2017, balance sheet at

• A) $620,000.
• B) $627,000.
• C) $640,000.
• D) $645,000.

---

Definitions:

Coaching

The process of guiding an individual or team to improve their skills, performance, or personal development.

Obstacles

Barriers, impediments, or hurdles that hinder progress towards achieving a goal or objective.

Expectancy Theory

A motivational theory suggesting that people are motivated to perform actions based on the expected outcomes and the value they place on those outcomes.

Individual Differences

Refers to the variations among individuals in their qualities, abilities, skills, perceptions, and behaviors.