If Pop Company Owns 15% of the Common Stock of Son

question 145

Multiple Choice

If Pop Company owns 15% of the common stock of Son Company, then Pop Company typically:

• A) Would record 15% of the net income of Son Company as investment income each year.
• B) Would record dividends received from Son Company as investment revenue.
• C) Would increase its investment account by 15% of Son Company income each year.
• D) All of these answer choices are correct.

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