The Following Information Pertains to Questions

question 4

Multiple Choice

The following information pertains to questions
GNR Inc owns 100% of NMX Inc.During the year,NMX Inc earned a net income of $40,000 and paid Dividends of $10,000.
-Assuming that GNR owned 80% of NXR instead of 100%,what would be the effect on GNR's investment in NMX account under the Equity Method?

• A)An increase of $30,000.
• B)An increase of $40,000.
• C)An increase of $24,000.
• D)No effect.

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Definitions:

Strongest Relationship

The most intense or durable bond between individuals, often characterized by mutual respect, trust, and understanding.

Variables

Elements, features, or factors that are likely to vary or change within the context of a scientific study or experiment.

Correlation Coefficient

A statistical measure that calculates the strength of the relationship between the relative movements of two variables. The values range between -1.0 and 1.0.

Calculation Error

A mistake made during the process of calculating, which can result in an incorrect outcome or answer.