21. Empresa Brava owns 25% of the common shares of Empresa Pacifica. In 2022, Pacifica reported net income of $200,000 and paid dividends in the amount of $60,000. Brava uses the indirect method to present the operational activities of the Statement of Cash Flows (EFE) for the year 2022. How did Brava present this situation? a. A line in the EFE that says: Payment of dividends $15,000 b. A line that reads: Collection of investment income $50,000 c. An adjustment to net income adding $35,000 d. An adjustment to net income by subtracting $35,000 22. In the previous question, if Brava uses the direct method, how does it present the information? a. A line in the EFE that says: Payment of dividends $15,000 b. A line that reads: Collection of investment income $50,000 c. An adjustment to net income adding $35,000 d. An adjustment to net income by subtracting $35,000 23. A company has two intangible assets, Patent and Goodwill. In 2022 the amortization of the Patent was $30,000. Goodwill was not amortized in 2022, but impairment was recognized for $50,000. The company uses the indirect method for operational activities in the EFE. What adjustment is made to the 2022 Net Income? a. $80,000 subtracted b. Add $80,000 c. Add $30,000 d. Add 520,000