Gunnar Ltd

question 12

Multiple Choice

Gunnar Ltd.owns 100% of the common shares of Ivy Ltd.During the year,Gunnar reported net income of $108,000 including its income from its investment in Ivy accounted for under the cost method.Ivy reported net income of $20,000 and paid dividends of $8,000 during the year.What net income will be reported by Gunnar on its separate-entity financial statements under the equity method and on its consolidated financial statements?

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Definitions:

Conditioned Stimulus

An initially neutral signal that, once it's linked with an unconditioned stimulus, ultimately provokes a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Ivan Pavlov

A Russian physiologist best known for his work in classical conditioning, demonstrating the learning process of associative reflexes.

Latent Learning

Latent Learning refers to the process where learning occurs without any obvious reinforcement and is not immediately demonstrated through behavior.