Use the Following Information to Solve the Following Questions

question 15

Multiple Choice

Use the following information to solve the following questions:
Red Corp. owns 3,000 of the 10,000 outstanding common shares of Grey Corp. and exercises significant influence. During 2020, Grey reported net income of $ 120,000 and paid total cash dividends of $ 40,000.
-Red Corp. should report investment revenue for 2020 of

• A) $ 12,000.
• B) $ 24,000.
• C) $ 36,000.
• D) $ 48,000.

---

Definitions:

Constant-Sum Game

A situation in game theory in which the total gains and losses among participants are always balanced, implying that one player's gain is another's loss.

Simultaneous-Move

Refers to games or decision scenarios where all players make their moves at the same time, without knowledge of the others' choices.

Loss

Loss refers to the situation in which the total costs exceed the total revenues of a business or transaction, resulting in a negative profit.

Simultaneous-Move

A strategy in game theory where all players make their moves at the same time, unaware of the choices other players are making.