Joker Corporation Owns 80% of Klue Corporation

question 69

Multiple Choice

Joker Corporation owns 80% of Klue Corporation. Joker Corporation also owns 45% of Lion Corporation and 45% of Mark Corporation. Klue Corporation owns 40% of Lion Corporation and 10% of Mark Corporation. Which corporations are members of a controlled group?

• A)Klue, Lion, and Mark Corporations
• B)Joker, Klue, Lion, and Mark Corporations
• C)Joker, Klue, and Lion Corporations
• D)Joker and Klue Corporations

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Definitions:

Retained Earnings

The portion of a company's profit that is held back and not paid out as dividends, used for reinvestment in the business or debt repayment.

Stock Split

A corporate action that increases the number of shares in a company by issuing more shares to current shareholders proportional to their ownership.

Market Value

The current value of an asset or company based on the price that it can be sold in the open market.

Paid In Surplus

The amount of money paid by investors for shares above their nominal value, representing additional contributed capital.