Ashley Company Ashley Company Purchased 2,000 of the 10,000 Outstanding Shares of Shares

question 70

Multiple Choice

Ashley Company
Ashley Company purchased 2,000 of the 10,000 outstanding shares of Judd, Inc.'s common stock for $60,000 on January 1, 2010.During 2010, Judd declared a dividend of $5 per share and reported net income of $75,000.At the end of 2010 the market value of a share of Judd, Inc.stock has increased to $32 per share.
-If Ashley Company accounts for the investment as a minority,passive and classifies the investment as an available-for-sale investment,then Ashley will recognize what amount of 2010 income from the investment?

• A) $4,000
• B) $10,000
• C) $25,000
• D) $15,000

---

Definitions:

Turbulent Blood Flow

A type of blood flow characterized by chaotic changes in pressure and flow velocity, often associated with cardiovascular issues.

Vascular Compliance

The capability of blood vessels to expand and contract with changes in pressure, essential for maintaining stable blood flow and pressure.

Vessel Decreases

A process or condition where the diameter of blood vessels decreases, potentially affecting blood flow and pressure.

Blood Flow

The circulation of blood within the circulatory system, which transports oxygen and nutrients to the cells and carries away waste products.