At the Beginning of 20X1, Manowar Ltd

question 48

Multiple Choice

At the beginning of 20X1, Manowar Ltd. acquired 20% of the voting shares of Cortez Co. for $150,000. Through this investment and by having two seats on their Board of Directors, Manowar has signi?cant in?uence over Cortez. In 20X1, Cortez earned net income of $70,000 and paid dividends of $40,000. In 20X2, Cortez earned net income of $80,000 and paid dividends of $100,000. At the end of 20X2, what is the balance of Manowar's "Investment in Cortez" account?

• A) $152,000
• B) $150,150
• C) $150,000
• D) $172,500

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Definitions:

Adaptive Leaders

Leaders who are able to adjust their leadership style and strategies to meet the changing needs of their organization and workforce.

Servant Leaders

Leadership philosophy focused on serving others first, where the leader's primary goal is to enhance the growth and wellbeing of individuals and the organization.

Supportive Leaders

Leaders who focus on the well-being of their team members, actively working to create a supportive, encouraging work environment.

Power Wielders

Individuals or groups who hold significant influence or control over others, often through positions of authority or resources.