Ocean Corporation Owns 30% of Woods Corp

question 36

True/False

Ocean Corporation owns 30% of Woods Corp.for which they paid $5.5 million and uses the equity method to account for the investment.Woods Corp.paid a $100,000 dividend; the investment in Woods Corp.account will decrease by $30,000,which is Ocean's proportionate share of the dividend.

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Definitions:

Economic Impact

The effect of an event, policy, or market condition on the economy of a region or country, often measured in terms of changes in GDP, employment, or income.

Civil War

A conflict between citizens of the same country. In the United States, it refers specifically to the war fought from 1861 to 1865 between the North and South over issues including states' rights and slavery.

Northern Society

An association or community located in the northern part of a country or region, often distinct in its cultural, economic, or social characteristics when contrasted with southern counterparts.

State Sovereignty

The principle that the state has the authority to govern itself without external interference, holding supreme power over its territory and population.