If Pop Company exercises significant influence over Son Company and owns 40% of its common stock, then Pop Company: Would record 40% of the net income of Son Company as investment income each year. O Would increase its investment account when Son Company declares dividends. All of these answer choices are correct. O Would record dividends received from Son Company as investment revenue.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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If Pop Company exercises significant influence over Son Company and owns 40% of its common stock, then Pop Company:
Would record 40% of the net income of Son Company as investment income each year.
O Would increase its investment account when Son Company declares dividends.
O All of these answer choices are correct.
O Would record dividends received from Son Company as investment revenue.
Transcribed Image Text:If Pop Company exercises significant influence over Son Company and owns 40% of its common stock, then Pop Company: Would record 40% of the net income of Son Company as investment income each year. O Would increase its investment account when Son Company declares dividends. O All of these answer choices are correct. O Would record dividends received from Son Company as investment revenue.
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