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:

Political Power

Pertains to the ability or capacity to direct or influence the behavior of others or the course of events in a governance context.

American Colonies

The territories on the eastern coast of North America that were settled and governed by European powers, ultimately declaring independence to become the United States of America.

British Patriotic Sentiment

A feeling of national pride and loyalty to the United Kingdom, often associated with historical events, cultural heritage, and military achievements.

Eighteenth Century

The period from 1701 to 1800, marked by significant historical, cultural, and social changes globally.