Gilman Company Purchased 100,000 of the 250,000 Shares of Common

question 60

Multiple Choice

Gilman Company purchased 100,000 of the 250,000 shares of common stock of Burke Corporation on January 1, 2014, at $40 per share as a long-term investment. The records of Burke Corporation showed the following on December 31, 2014: $\begin{array}{lr}2014 \text { net income } & \$ 575,000 \\\text { Dividends declared and paid during December, 2014 } \\\text { Market price per share } & \$ 30,000\end{array}$ At what amount should Gilman Company report the Burke investment on the December 31, 2014 balance sheet?

• A) $4,218,000.
• B) $4,000,000.
• C)$4,124,000.
• D)$3,800,000.

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Definitions:

Source Amnesia

A memory disorder where one can recall certain information but is unable to remember where, when, or how they learned that information.

Working Memory

The part of short-term memory that is concerned with immediate conscious perceptual and linguistic processing.

Sensory Memory

The shortest term element of memory, it is the ability to retain impressions of sensory information after the original stimuli have ended.

Abstract Thinking

The capability to conceptualize objects, principles, and ideas that are not tangible.