Photo Finish Corporation Bought a 40% Interest in Click-It Corporation's

question 76

Multiple Choice

Photo Finish Corporation bought a 40% interest in Click-It Corporation's $1 par value voting common stock on March 31, 2015. On that date, Click-It paid $20 million for 2 million shares at a $10 market price per share. On December 31, 2015, Click-It paid a $1 million cash dividend declared earlier in 2015, and reported net income for the year ended 2015 of $10 million. On December 31, 2015, Click-It's stock was trading at $11.50 per share. What effect will the dividend have on the Photo Finish financial statements?

• A) It would increase cash and increase equity in affiliate earnings.
• B) It would increase cash and decrease the investment account.
• C)It would increase cash and increase net unrealized gains/losses.
• D)It would increase cash and increase the investment account.

Evaluate strategies for addressing envy and promoting welfare in diverse community settings.

Understand the concept of separating and pooling equilibria in labor and insurance markets.

Analyze how personal preferences and productivity influence worker choices and wages.

Evaluate different scenarios of adverse selection in insurance and labor markets.

---

Definitions:

Anticonformity

Anticonformity describes behavior that goes against or opposes the norms or standards of a group intentionally, often to maintain a sense of individuality.

Independence

The state of being self-sufficient and not reliant on external support or being influenced by others in decisions or actions.

Group Cohesiveness

The extent to which members of a group support and validate one another while working to achieve a common goal.

Formal Dress

A style of clothing that adheres to specific cultural or social codes, often worn for ceremonies, formal events, or professional settings.