At the Beginning of 20X1, Anwar Ltd $$\begin{array} { | c | c | } \hline \text { DRCash } & 12,000 \\\hline \text { CR Investment in Cruz } & 12,000 \\\hline\end{array}$$

question 14

Multiple Choice

At the beginning of 20X1, Anwar Ltd. acquired 15% of the voting shares of Cruz Co. for $150,000. Anwar does not have any significant influence over Cruz. Anwar reports the investment using the cost method. In 20X1, Cruz earned net income of $70,000 and paid dividends of $40,000. In 20X2, Cruz earned net income of $80,000 and paid dividends of $100,000. At the end of 20X2, what journal entry should Anwar make on its books to record the dividends from Cruz?

• A) \[\begin{array} { | c | c | }
• \hline \text { DRCash } & 12,000 \\
• \hline \text { CR Investment in Cruz } & 12,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | c | }
• \hline \text { DRCash } & 15,000 \\
• \hline \text { CR Investment in Cruz } & 15,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | c | }
• \hline \text { DRCash } & 15,000 \\
• \hline \text { CR Investment income } & 15,000 \\
• \hline
• \end{array}\]
• D)No entry is required

Describe the determination and implications of the poverty rate.

Comprehend the origins of wealth in the United States, particularly the balance between inherited wealth and self-made fortunes.

Articulate the utilitarian justification for income redistribution and its underlying assumptions.

Explore the maximin criterion and its implications for income distribution policies.

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Definitions:

Fed Targets

The economic objectives that the Federal Reserve aims to achieve through its monetary policy, including stable prices, maximum employment, and moderate long-term interest rates.

Interest Rate

The percentage charged on the total amount of borrowed money or earned through investments, indicating the cost of credit or yield.

Monetary Policy

The process by which a central bank or monetary authority manages the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.

Money Supply

The entirety of monetary valuables available in an economy at any chosen time, featuring cash in the form of coins and notes, along with the sums in checking and savings accounts.