Assuming that GNR Inc. uses the Cost 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 $30,000.
B) An increase of $40,000
C) An increase of $10,000.
D) No effect.


D) No effect.

Business

You might also like to view...

When would you want to use qualitative data in a business proposal?

a. when highlighting consumer feedback on a product b. when outlining the sales growth percentage for a product c. when comparing the gross versus net profits of a product d. when identifying the highest sales via customer demographics on a product

Business

The Dividends account normally has a debit balance.

Answer the following statement true (T) or false (F)

Business

If a defendant is found not guilty in a criminal case, the government can retry the case with a new jury

Indicate whether the statement is true or false

Business

E-mail is considered a leaner medium than face-to-face communication.?

Indicate whether the statement is true or false

Business