u n balance, and this balance would serve as the new cost. It Pop Company owns 15% of the common stock of Son Company, then Pop Company typically a Would record 15% of the net income of Son Company as investment income each ycar. b. Would record dividends received from Son Company as investment revenue Would increase its investment account by 15% of Son Company income each year. d. All of these answer choices are correct. 6 of 6 When there is trading cost (such as commissions) associated with equity or bond investment, they are generally treated as: a Capitalized and added to investment account b. Expensed as trading cost expense c. Deferred until selling these investment d. None of these answer choices are correct. 24. 9:59 Which of the following increases the investment account under the equity method of accounting? a. Decreases in the market price of the investee's stock b. Dividends paid by the investee that were declared in the previous year. c. Net loss of the investec company. d. None of these answer choices are correct. Done 2001 congid 51 200 000 for its investment in 60,000 2. Brad Corporation acquired Lail Inc. As part of the acquisition, Brad records goodwill of $4,000,000. Brad estimates that this goodwill can be attributed to nequisition of trained employees ($800,000), loyal customers ($1,200,000), company location (5500.000), and synergies with Brad's existing operations ($1,500,000), Brad expects these benefits to be realized over the next 10 years. At the end of the first year, management calculates amortization of the goodwill to be $400,000 ($4,000,000 = 10 years). Which of the following statements is correct? a. Management's calculation is correct. b. Management should calculate amortization based only on the value of trained employees and loyal customers. c. Management should calculate amortization based only on company location and synergies with existing operations. d. Management should not amortize any goodwill