If Pop Company Exercises Significant Influence Over Son Company and Owns

Multiple Choice

If Pop Company exercises significant influence over Son Company and owns 40% of its common stock, then Pop Company:

A) Would record dividends received from Son Company as investment revenue.
B) Would increase its investment account when Son Company declares dividends.
C) Would record 40% of the net income of Son Company as investment income each year.
D) All of these answer choices are correct.