The Following Information Pertains to Questions

question 57

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 once again that GNR owned 80% of NXR instead of 100%,what would be the effect on GNR's investment in NMX account under the cost method if GNR received $9,000 in dividends from NMX?

• A)An increase of $1,000.
• B)No effect
• C)A decrease of $1,000.
• D)An increase of $23,000.

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