In Year 2, ABC Corp

question 91

Multiple Choice

In Year 2, ABC Corp.acquired a 15% interest in XYZ, Inc., for $50,000.During the year, XYZ paid dividends of $10,000 and had net income of $30,000.ABC sold the shares of XYZ for $65,000 cash.What entry will ABC make to record the sale?

• A)Cash 65,000 Gain on Sale 12,000
• Investment in XYZ 53,000
• B)Cash 65,000 Gain on Sale 9,000
• Investment in XYZ 56,000
• C)Cash 65,000 Additional Paid-in Capital 15,000
• Investment in XYZ 50,000
• D)Cash 65,000 Gain on Sale 15,000
• Investment in XYZ 50,000
• E)Cash 65,000 Treasury Stock 15,000
• Investment in XYZ 50,000

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Definitions:

Sexual Response

The physiological and emotional reactions of an individual to sexual arousal, typically described in phases such as desire, arousal, orgasm, and resolution.

Excitement Phase

The initial stage of the human sexual response cycle, characterized by increased heart rate, muscle tension, and blood flow to the genital areas.

Sexual Interest

The level of attraction or arousal a person feels towards others, which can vary across a spectrum of preferences.

Testosterone

A steroid hormone prevalent in males that is responsible for the development of male sexual characteristics, but also found in females and plays a vital role in health and well-being.