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What would be the effect on GNR investment

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Question - GNR Inc. owns 100% of NMX Inc. During the year, NMX Inc. earned a net income of $40,000 and paid dividends of $10,000.

Assuming that GNR owned 80% of NXR instead of 100%, what would be the effect on GNR's investment in NMX account under the Equity Method?

a. An increase of $40,000.

b. An increase of $24,000.

c. An increase of $30,000.

d. No effect.

Reference no: EM132681511

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