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.
Assuming once again that GNR owned 80% of NXR instead of 100%, what would be the effect on GNR's investment in NMX account under the cost method if GNR received $9,000 in dividends from NMX?
A) An increase of $23,000.
B) An increase of $1,000
C) No effect.
D) A decrease of $1,000.
Correct Answer:
Verified
Q24: The amount of interest expense appearing on
Q25: GNR Inc. owns 100% of NMX Inc.
Q26: What amount of dividends would appear on
Q27: The amount of Goodwill arising from this
Q28: The amount of depreciation expense appearing on
Q30: GNR Inc. owns 100% of NMX Inc.
Q31: Company A sells inventory to its subsidiary,
Q33: The Net Income attributable to Big Guy
Q38: Any excess of fair value over book
Q39: GNR Inc. owns 100% of NMX Inc.
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents