Find aroma investment in baltic will increase net income

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Reference no: EM132834323

Problem 1: Aroma Limited owns a 25% interest in the shares of Baltic Corporation. During the year, Baltic pays $10,000 in dividends to Aroma and reports $100,000 net income. Aroma's investment in Baltic will increase Aroma's net income by

a) $25,000.

b) $27,500.

c) $10,000.

d) $ 2,500.

Reference no: EM132834323

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