A 30% Ownership Interest in an Investee Is Being Accounted

question 59

Multiple Choice

A 30% ownership interest in an investee is being accounted for using the equity method.If the investee reports $250,000 of income,and pays $100,000 of dividends for the current year,the net effect of the entries made by the investor will be to:

• A) reduce the Investment in Common Shares account by $150,000
• B) increase the Investment in Common Shares account by $150,000
• C) reduce the Investment in Common Shares account by $45,000
• D) increase the Investment in Common Shares account by $45,000

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Definitions:

Ethnic Group

A community or population made up of people who share a common cultural background, including language, religion, and traditions.

Functionalists

Scholars within sociology who focus on the role that social structures and institutions play in maintaining order and stability in society.

Reproduction Of Society

The processes by which societies ensure continuity through the maintenance and transmission of culture, norms, and values across generations.

Makuahine

Hawaiian term for "mother," highlighting cultural importance and respect for the role.