Milton Company Owns 30% Interest in the Stock of Darcy

question 102

Multiple Choice

Milton Company owns 30% interest in the stock of Darcy Corporation. During the year, Darcy pays $20,000 in dividends to Milton, and reports $100,000 in net income. Milton Company's investment in Darcy will increase Milton's net income by:

• A) $15,000.
• B) $30,000.
• C) $24,000.
• D) $6,000.

---

Definitions:

Cancerous Cells

Abnormal cells that divide uncontrollably and can invade nearby tissues or spread to other parts of the body through the bloodstream.

Abnormal Cells

Cells that have undergone changes in structure, function, or behavior, often indicative of diseases like cancer.

Leukocytes

White blood cells (derived from the Greek words leukos, meaning “white,” and kytos, literally meaning “a hollow” but used to refer to cells).

Erythrocytes

Erythrocytes are red blood cells responsible for carrying oxygen from the lungs to the body tissues and carbon dioxide as a waste product, away from the tissues and back to the lungs.