Answered
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 that GNR Inc. uses the Equity Method, what effect would the above information have on GNR's investment in NMX account?
A) An increase of $10,000.
B) An increase of $30,000.
C) An increase of $40,000.
D) No effect.
On Jun 17, 2024