Randy Company Acquired 40% of the Voting Stock of Biel

question 61

Multiple Choice

Randy Company acquired 40% of the voting stock of Biel Company for $40 million.At the end of Year 1,Biel Company reports net income of $15 million and pays cash dividends of $5 million.At the end of Year 1,the market value of Randy Company's investment in Biel Company is $44 million.The ________ method should be used by Randy Company to account for the investment.

• A) market-value
• B) consolidated
• C) cost
• D) equity

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Definitions:

Behaviorism

A theory in psychology that emphasizes the importance of external behaviors in understanding and modifying behavioral responses, downplaying internal processes.

Implementation Of Self-Control

The process by which individuals learn and apply methods to regulate their thoughts, emotions, and behaviors effectively, often in pursuit of long-term goals.

Relational Aggression

A type of aggression that involves harming others through deliberate manipulation or damage to their relationships or social status.

Acting Out

Behaving badly or inappropriately, often as a response to emotional distress, in ways that deviate from acceptable social behavior.