Multiple Choice
Vince Company purchased common stock in Gill Company.During the current year,Gill Company earned $4,000,000 and paid dividends of $1,000,000.Assume that Vince Company owns 40 percent of the outstanding shares of Gill Company.Gill Company's net income will affect Vince Company by ________.
A) increasing investments by $1,600,000
B) increasing investments and cash by $2,000,000
C) increasing cash and stockholders' equity by $400,000
D) increasing cash and decreasing investments by $1,600,000
Correct Answer:
Verified
Correct Answer:
Verified
Q85: Elway Company acquired 80 percent of the
Q86: An efficient capital market is one in
Q87: Presented below is the balance sheet of
Q88: On January 1,2012,a parent company acquired all
Q89: Fisher Company acquired 80 percent of the
Q91: Rocky Company acquired 40% of the voting
Q92: Rocky Company acquired 40% of the voting
Q93: The following information is available for Guess
Q94: At the date of acquisition by a
Q95: Company A acquired 100 percent of the