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In 2017,Gigajoule Corporation used the equity method to account for a 25% ownership interest in Megawatt Corporation.If Megawatt Corporation reports $400,000 of income and pays $80,000 of dividends in 2017,the net effect of the entries made by Gigajoule Corporation in 2017 will be to:
Horizontal Merger
A business consolidation that occurs between firms that operate in the same industry.
Vertical Merger
A business integration strategy where companies within the same supply chain but at different stages of production merge.
Conglomerate Merger
A type of merger between companies that operate in unrelated business activities, diversifying business interests and reducing risk.
Antitrust Charges
Legal accusations alleging violations of antitrust laws, which are designed to prevent anti-competitive practices, monopolies, and to promote fair competition in the market.
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