A company pays $500,000 for 30% of the common shares of MSG, Inc as a long-term equity investment. In the first year, MSG, Inc. reports net income of $80,000 and pays a cash dividend of $30,000. The balance in Equity Investment - MSG Common Shares, at year end under the equity method is:

Question 17 options:

a)

$485,000.

b)

$509,000.

c)

$515,000.

d)

$524,000.

Use the following information to answer questions 18 and 19.

Question 18 (1 point)

The unrealized gain or loss to be recognized is

Question 18 options:

a)	There is no unrealized gain or loss.

b)	$2,500 loss.

c)	$1,100 loss.

d)	$1,400 gain.

Question 19 (1 point)

The following year, the Spencer Inc. shares were sold for $20,000. The loss to be recognized is:

Question 19 options:

a)

$4,000.

b)

$2,900.

c)

$1,500.

d)

$ 400.

Question 20 (1 point)

Saved

Inflows and outflows from investing and financing activities should be reported separately on the cash flow statement.

Question 20 options:

	a) True
	b) False

Question 21 (1 point)

Information for the cash flow statement is taken from the adjusted trial balance.

Question 21 options:

	a) True
	b) False

Question 22 (1 point)

Investments in property, plant, and equipment are considered cash outflows used by operating activities.

Question 22 options:

	a) True
	b) False

Question 23 (1 point)

An increase in dividends payable increases net cash provided by operating activities.

Question 23 options:

	a) True
	b) False

Question 24 (1 point)

Saved

When accounts receivable increases during the year, revenues on a cash basis are higher than revenues on an accrual basis.

Question 24 options:

	a) True
	b) False