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.

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Definitions:

Prenatal Development

The process of growth and development within a mother's womb from conception to birth.

Rubella

Rubella, also known as German measles, is a contagious viral infection notable for its distinctive red rash, primarily a concern due to its serious risk to unborn babies if contracted by pregnant women.

Congenital Malformations

Structural or functional anomalies that occur during intrauterine life and can be identified prenatally, at birth, or later in life.

Vaccine

A biological preparation that provides active acquired immunity to a particular infectious disease.