Use the Following Information for Questions

question 20

Multiple Choice

Use the following information for questions
Altadore Ltd.acquired 30% of Dorset Corp.'s common shares on January 1, 2011 for $240,000.During 2011, Dorset earned $100,000 and paid dividends of $60,000.Altadore's 30% interest in Dorset gives Altadore the ability to exercise significant influence over Dorset 's operating and financial policies.During 2012, Dorset earned $120,000 and paid dividends of $40,000 on April 1 and $40,000 on October 1.On July 1, 2012, Altadore sold half of its shares in Dorset for
$158,000 cash.
-Before income taxes, what amount should Altadore include in its 2011 income statement as a result of the investment?

• A)$100,000.
• B)$30,000.
• C)$60,000.
• D)$18,000.

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Definitions:

Expected Number

A statistical measure describing the average or mean value anticipated in a random variable or in the outcomes of a random experiment.

Binomially Distributed

A distribution characteristic of a random variable that represents the number of successes in a fixed number of independent Bernoulli trials, each with the same probability of success.

Standard Deviation

A formula to assess how widespread or dispersed a series of values is.

Expected Number

A statistical term referring to the mean value predicted for a particular variable or event in a probability distribution.