Anaconda Copper Inc. created a subsidiary in Chile last year to mine copper ore. The proportion of net income paid back to the parent company as a dividend would be recorded in the current account subcategory of:.1. Service trade2. Income trade3. Goods trade4. Funds transfer

The correct answer in this case would be option 2. among the answer choices given in the question or Income trade.

Explanation:

In general sense,any income or dividend that is paid to the parent company located in any foreign country conducting any subsidiary work or activity in another country is included under the income trade subcategory of current account.In this case,the Anaconda Copper Inc. is the erstwhile parent company that receives dividend share from the overall net income generated from its business operation in Chile,which is another country.Based on the concept of net income subcategory of current account,the dividend share of the net income received by Anaconda Copper Inc. in this case would be classified under Income trade section of the current account.

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