Franklin Corporation Invested $100,000 to Acquire 20,000 Shares of Hope

question 28

Multiple Choice

Franklin Corporation invested $100,000 to acquire 20,000 shares of Hope Technologies,Inc.on March 1,2018.Hope pays a cash dividend of $0.25 per share on July 2,2019.The investment is classified as equity securities with no significant influence.Based on these two transactions,which of the following is TRUE of the accounting equation as of July 2,2019?

• A) Total assets in the balance sheet will remain unchanged.
• B) Current assets in the balance sheet will remain unchanged.
• C) Equity in the balance sheet will increase.
• D) Total liabilities in the balance sheet will increase.

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Definitions:

Chicago Mercantile Exchange

A global marketplace for trading futures and options across various asset classes, such as agricultural products, currencies, and interest rates.

Chicago Board Of Trade

A leading platform for the trading of futures and options related to agricultural commodities, financial products, and other assets.

Futures Exchanges

Futures exchanges are marketplaces where futures contracts and options on futures contracts are traded, facilitating the buying and selling of financial instruments and commodities with future delivery dates.

Interest Rate Swaps

Financial derivatives contracts in which two parties exchange interest rate payments, typically one fixed rate for one floating rate, on a specific nominal amount.