Chopper Company Owns 10% Interest in the Stock of Elton

question 74

Multiple Choice

Chopper Company owns 10% interest in the stock of Elton Corporation. During the year, Elton pays $10,000 in dividends to Chopper, and reports $400,000 in net income. Chopper Company's investment in Elton will increase Chopper net income by

• A) $10,000.
• B) $30,000.
• C) $40,000.
• D) $1,000.

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Definitions:

Chief Executive Officers (CEOs)

The highest-ranking executives in a company or organization, responsible for making major corporate decisions, managing operations, and steering the company's overall direction.

Business World

The environment or domain involving commerce, trade, and the creation and maintenance of profitable organizations.

Accountability

is the obligation of an individual or organization to account for their activities, accept responsibility for them, and to disclose the results in a transparent manner.

Aggression

Actions aimed at causing pain or frightening other individuals.