Barcelona Company Owns 40% Interest in the Stock of ABX

question 235

Short Answer

Barcelona Company owns 40% interest in the stock of ABX Corporation. During the year, ABX pays $20,000 in dividends to Barcelona, and reports $150,000 in net income. Barcelona Company's investment in ABX will increase Barcelona net income by
A) $52,000.
B) $60,000.
C) $52,000.
D) $8,000.

• A) $52,000.
• B) $60,000.
• C) $52,000.
• D) $8,000.

---

Definitions:

Chocolate Cake

A sweet baked dessert made from cocoa, sugar, flour, and other ingredients, often layered with frosting or filling.

Nonverbal Behaviors

Communication methods not involving words, including gestures, facial expressions, and body language.

Nervous

Pertaining to the nerves or the nervous system and often used to describe feelings of anxiety or apprehension.

Eye Contact

The act of looking directly into another person's eyes, often used as a nonverbal communication tool.