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37/ Madison Corporation purchased 40% of Jay Corporation for $400,000 on January 1. On June 20 of the same year, Jay Corporation declared total cash dividends of $100,000. At year-end, Jay Corporation reported net income of $500,000. The balance in Madison Corporation's Long-Term Investment-Jay Corporation account as of December 31 should be:

Multiple Choice

$640,000.

$240,000.

$740,000.

$400,000.

$560,000.

38/Segmental Manufacturing owns 30% of Glesson Corp. stock. Glesson pays a total of $51,500 in cash dividends for the period. Segmental's entry to record the dividend transaction would include a:

Multiple Choice

Credit to Cash for $15,450.

Credit to Investment Revenue for $51,500.

Credit to Long-Term Investments for $15,450.

Debit to Cash for $51,500.

Debit to Long-Term Investments for $15,450.

39/ If the exchange rate for Canadian and U.S. dollars is 0.83777 to 1, this implies that 4 Canadian dollars will buy ____ worth of U.S. dollars. (Select the nearest answer.)

Multiple Choice

$0.20944

$0.83777

$1.83777

$3.35108

None of these.

40/ A company had net income of $41,000, net sales of $310,000, and average total assets of $210,000. Its profit margin and total asset turnover were respectively:

Multiple Choice

2.02%; 1.48.

13.23%; 1.48.

13.23%; 0.20.

1.48%; 13.23.

1.48%; 0.20.

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