Interesting Intercorporate Investments Question parent, income, investment

HuskyGrad2010

The parent owns 60% of the subsidiary.

The subsidiary's net income is 65.

Question:

The incremental effect on the parent's net income from its investment in the subsidiary is: ?

A) 39

B) 45

C) 65



Edited 1 time(s). Last edit at Monday, April 26, 2010 at 11:53AM by CFA.Rhythm.