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Brava owns 25% of the common stock of Pacifica. In 2022, Pacifica reported net income of $200,000 and paid dividends in the amount of $60,000.

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Brava owns 25% of the common stock of 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 operating activities of the 2022 Statement of Cash Flows. How did Brava present this situation? a. A line in the EFE that reads: Dividend collection $15,000. b. A line that says: Collection of investment income $50,000 c. An adjustment to net income by adding $35,000 d. An adjustment to net income by subtracting $35,000 In the previous question, if Brava uses the direct method, how does it present the information? a. A line in the EFE that reads: Dividend collection $15,000. b. One line that says: Collection of investment income $50,000 c. An adjustment to net income by adding $35,000 d. An adjustment to net income by subtracting $35,000

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