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:

Primary Funding

The initial capital provided to start a business or venture, often used for early-stage development and operations.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them a stake in the company's assets and profits.