Jacana Corporation Paid $200,000 for a 25% Interest in Lilypad

question 6

Multiple Choice

Jacana Corporation paid $200,000 for a 25% interest in Lilypad Corporation's common stock on January 1,2013,but was not able to exercise significant influence over Lilypad.During 2014,Jacana reported income of $120,000,excluding its income from Lilypad,and paid dividends of $50,000.Lilypad reported net income of $40,000 during 2014 and paid dividends of $20,000.Jacana should report net income for 2014 in the amount of

• A)$115,000.
• B)$120,000.
• C)$125,000.
• D)$130,000.

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Definitions:

Differentiation

A strategy aimed at producing unique and distinguishable products or services to gain a competitive edge in the market.

Integration

The process of combining or coordinating separate parts or elements to function together as a unified whole.

Efficiency Of Operations

This term refers to the degree to which an operation can achieve its objectives with the minimum amount of resources and waste.

Local Optimization

Local Optimization focuses on finding the best solution within a specific subset or vicinity of all possible solutions, rather than the absolute best solution across all sets.