Pyming Corporation Accounts for Its 40% Investment in Sillabog Company

question 9

Multiple Choice

Pyming Corporation accounts for its 40% investment in Sillabog Company using the equity method.On the date of the original investment,fair values were equal to the book values except for a patent,which cost Pyming an additional $40,000.The patent had an estimated life of 10 years.Sillabog has a steady net income of $20,000 per year and consistently pays out 40% of its net income as dividends to its shareholders.Which one of the following statements is correct?

• A)The net change in the investment account for each full year will be a debit of $8,000.
• B)The net change in the investment account for each full year will be a debit of $4,800.
• C)The net change in the investment account for each full year will be a debit of $800.
• D)The net change in the investment account for each full year will be a credit of $800.

Understand different theories of language development and their implications.

Recognize and explain the concepts of decision making and problem-solving strategies.

Appreciate the impact of language on thought processes and cognitive development as proposed by the linguistic relativity hypothesis.

Identify the roles of creativity and flexibility in overcoming functional fixedness and mental set in problem-solving.

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Definitions:

Economy

The system of production, distribution, and consumption of goods and services within a particular region or country.

Financially

Pertaining to finances or monetary resources, often used in the context of managing money or economic status.

James Marcia

A developmental psychologist known for his work on adolescent identity development, proposing four identity statuses: achievement, moratorium, foreclosure, and diffusion.

Identity Foreclosure

A stage in adolescent identity development when an individual commits to an identity without exploring options, often due to external pressures.