Suppose Rock Company Acquires 40% of the Voting Stock of Hudson

question 56

Multiple Choice

Suppose Rock Company acquires 40% of the voting stock of Hudson Company for $40 million. In year 1, Hudson Company reports net income of $15 million and pays cash dividends of $5 million. At the end of the year the market value of Rock Company's investment in Hudson Company is $44 million. What accounts would be affected on Rock Company's books to reflect the year- end market value and by how much?

• A) Investments would increase by $4 million and Stockholders' Equity would increase by $4 million.
• B) There is no entry and no effect.
• C) Investments would increase by $44 million and Stockholders' Equity would increase by $44 million.
• D) Cash would increase by $44 million and Stockholders' Equity would increase by $44 million.

Understand the composition and structure of the human genome.

Appreciate the evolutionary significance of mutations.

Identify and distinguish among tetrapods, their features, and close relatives.

Understand the concepts of phylogeny, synapomorphies, and how to interpret phylogenetic trees.

---

Definitions:

Conflict Minerals

Minerals sourced in areas of armed conflict, particularly the Democratic Republic of Congo and surrounding region, whose sale finances armed groups that perpetuate violence.

Armed Violence

The use of weapons to inflict harm or coercion, often associated with conflicts or criminal activity.

Culture

The shared beliefs, values, norms, and practices that shape the behavior of people within a group, community, or society.

Beliefs

Fundamental convictions or principles that people hold to be true.