On January 1,2010,Entertainment Company Acquired 15% of the Outstanding Voting

question 72

Multiple Choice

On January 1,2010,Entertainment Company acquired 15% of the outstanding voting stock of Rocker Company as a long-term investment in available-for-sale securities.During 2010,Rocker Company reported net income of $1,500,000 and dividends declared and paid of $250,000.How much income will be reported during 2010 from the Rocker investment?

• A)$225,000
• B)$37,500
• C)$187,500
• D)$250,000

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Definitions:

Satisfied

A feeling of pleasure or contentment resulting from achieving what one wants or needs.

Satiety

The feeling of fullness or satisfaction that results from the consumption of food, leading to the cessation of eating.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for rapid action in threats, often referred to as the "fight or flight" response.

Ventral Hypothalamus

A portion of the hypothalamus associated with regulating metabolism, temperature, and various autonomic functions.