Photo Finish Corporation Bought a 40% Interest in the Voting

question 79

Multiple Choice

Photo Finish Corporation bought a 40% interest in the voting stock of Click It Corporation's $1 par value common stock for $20 million (2 million shares at a $10 market price) on March 31,2011.On December 31,2011,Click It paid a $1 million cash dividend declared earlier in 2011 and reported net income for the year ended 2011 of $10 million.On December 31,2011,Click It's stock was trading at $11.50 per share.At what amount will the Click It investment be reported on Photo Finish's December 31,2011 balance sheet?

• A)$20,000,000
• B)$23,000,000
• C)$23,600,000
• D)$24,000,000

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Definitions:

Avoidance Response

A behavior aimed at preventing an unpleasant or harmful event before it occurs.

Imitate

To copy or mimic the actions, appearance, or speech of another person or thing, often to learn or practice a specific behavior or skill.

Aggressive Behavior

Actions intended to harm or intimidate others, which can be a response to a perceived threat or a means to assert dominance.

Passive Avoidance

A learning process in which an individual learns to refrain from certain behaviors to avoid a negative outcome.