Wendell Company Owns 28% of the Common Stock of Porter

question 48

Multiple Choice

Wendell Company owns 28% of the common stock of Porter Company and accounts for the investment using the equity method. Assuming that Wendell Company purchased the stock several years ago, the balance in the investment account would be equal to the cost of the

• A) investment only
• B) investment plus Wendell's share of Porter's net income earned since the investment was purchased
• C) investment plus the total amount of dividends Wendell has received from Porter since the investment was purchased
• D) investment plus Wendell's share of Porter's net income earned since the investment was purchased minus the total amount of dividends Wendell has received from Porter since the investment was purchased

---

Definitions:

Chromosome 11

One of the 23 pairs of chromosomes in humans, containing genes important for immune function, cell cycle regulation, and various metabolic processes.

Mutation

Change in the number or kinds of nucleotides in the DNA of a gene.

Leukocytes

White blood cells that are part of the immune system, defending the body against infection and disease.

Formed Elements

The cells and cell fragments in the blood, such as red blood cells, white blood cells, and platelets, that are critical for blood clotting, oxygen transport, and immune defense.