On July 1, 2014, as a Long-Term Investment in Available-For-Sale

question 58

Multiple Choice

On July 1, 2014, as a long-term investment in available-for-sale securities, Wildlife Supply Company purchased 6,000 of the 18,000 outstanding shares of the nonvoting preferred stock of Nature Company for $30 per share. The records of Nature Company reflect the following: $\begin{array}{lr}2014 \text { net income } & \$ 60,000 \\\text { Dividends declared and paid during December, } 2014 & \$ 6,500 \\\text { December } 31,2014 \text { market price per share } & \$ 27\end{array}$ The amount reported on the balance sheet by Wildlife Company for its investment at December 31, 2014 would be which of the following?

• A) $179,800.
• B) $162,000.
• C)$182,000.
• D)$197,800.

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Definitions:

Statistically Significant

Indicates that an observed effect or result is unlikely to have occurred by chance, suggesting a real impact or difference that is not due to random variation.

Inferential Statistics

A branch of statistics focused on drawing conclusions about populations based on samples.

Power

In statistics, the probability that a test will correctly reject a false null hypothesis; essentially, the test's sensitivity to detect an effect when there is one.

Likelihood Of Error

The probability or chance that a statistical conclusion may be incorrect or misleading.