Assuming that GNR Inc. uses the Equity Method, what effect would the above information have on GNR's investment in NMX account?

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.
A) An increase of $40,000.
B) An increase of $10,000.
C) An increase of $30,000.
D) No effect.


C) An increase of $30,000.

Business

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