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P Corporation acquired an 80% interest in S Corporation two years ago at an implied value equal to the book value of S. On January 2, 2017, S sold equipment with a five-year remaining life to P for a gain of $120,000. S reports net income of $600,000 for 2017 and pays dividends of $200,000. P's Equity from Subsidiary Income for 2017 is:
Peripheral Route
A mode of persuasion that involves less cognitive processing, relying on peripheral cues like attractiveness or celebrity status, as proposed in the Elaboration Likelihood Model.
Need For Cognition
a personality trait that signifies a person's enjoyment of engaging in deep thought and the enjoyment of intellectual activities.
Self-Monitoring
An individual difference in people’s desire and ability to adjust their self-presentations for different audiences.
Psychological Reactance Theory
A theory which proposes that people value thinking and acting freely. Therefore, situations that threaten their freedom arouse discomfort and prompt efforts to restore freedom.
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