Power Generation Corp

question 79

Multiple Choice

Power Generation Corp. owns 38% of Electric Limited. Net income for Electric Limited for the year ending December 31, 2014, is $450,000. The journal entry prepared by Power Generation Corp. on December 31, 2014, includes a:

• A) debit to Cash for $171,000
• B) credit to Long-Term Investment for $171,000
• C) debit to Long-Term Investment for $450,000
• D) debit to Long-Term Investment for $171,000

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Definitions:

Id

A component of Sigmund Freud's model of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Self-Efficacy

One’s sense of competence and effectiveness.

Narcissistic

Pertaining to a personality trait characterized by excessive self-love, a need for admiration, and a lack of empathy for others.

Spotlight Effect

The tendency to overestimate the extent to which one's actions and appearance are noted by others.