debit to Investment Expense for $1,400.
7-
Multiple Choice Question 94
Mission Inc. earns $450,000 and pays cash dividends of $150,000
during 2013. Cox Corporation owns 70,000 of the 210,000 outstanding
shares of Mission.
How much revenue from investment should Cox report in 2013?
$150,000
$200,000
$50,000
$100,000
8-
Multiple Choice Question 138
Which of the following reasons best explains why a company that
experiences seasonal fluctuations in sales may purchase investments
in debt or stock securities?
The company may have excess cash.
The company may invest for speculative reasons to increase the value
in pension funds.
The company may generate a significant portion of its earnings from
investment income.
The company may invest for the strategic reason of establishing a
presence in a related industry.