Examlex

Solved

On October 1,20X7,Chicago Corporation Purchased 6,000 Shares of Buffalo Company's

question 29

Multiple Choice

On October 1,20X7,Chicago Corporation purchased 6,000 shares of Buffalo Company's 15,000 outstanding share of common stock for $25 per share.On December 15,20X7,Buffalo paid $120,000 in dividends to its common stockholders.Buffalo's net income for the year ended December 31,20X7 was $300,000,earned evenly throughout the year.In its 20X7 income statement,what amount of income from this investment should Chicago report?


Definitions:

Inherently Dangerous

Activities or substances that, by their nature, pose a potential risk of harm or damage even when reasonable care is taken.

Strict Liability

A legal principle that holds a party responsible for damages or losses, regardless of fault or intent.

Regulated Activity

Actions or operations subject to oversight and control by governmental or authoritative bodies to ensure compliance with laws and regulations.

Duty to Aid

The legal or moral obligation to provide assistance to a person in distress, under certain circumstances, without causing harm to oneself.

Related Questions