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

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Business

Maryjane Leblanc

27 May, 10:54

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

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Darius Hansen · Answer 1

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 - option A is the most correct answer.