Use the Following Information for Questions

question 18

Multiple Choice

Use the following information for questions.
On January 1, 2017, Abalone Ltd.acquired 30% of Flounder Corp.'s common shares for $240,000.During 2017, Flounder reported net income of $100,000 and paid total dividends of $60,000.Abalone's 30% interest in Flounder gives Abalone the ability to exercise significant influence over their operating and financial policies.During 2018, Flounder reported net income of $150,000 and paid total dividends of $30,000 on April 1 and $40,000 on October 1.On July 1, 2018, Abalone sold half of its shares in Flounder for $158,000 cash.
-The carrying amount of this investment in Abalone's December 31, 2017 balance sheet should be

• A)$252,000.
• B)$240,000.
• C)$270,000.
• D)$275,000.

---

Definitions:

GDP

The comprehensive market or monetary value of all goods produced to their completion and services provided within a country's borders during a particular timeframe is described as Gross Domestic Product.

Average Workweek

The average number of hours worked per week by employees in a particular sector or economy.

GDP

The Gross Domestic Product encompasses the entire monetary or market-based valuation of all finished outputs and services engendered within a country's boundaries over a fixed time period.

GDP Deflator

The GDP deflator is an economic metric that converts output measured at current prices into constant-dollar GDP, reflecting changes in the price level of all domestically produced goods and services in an economy.