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.

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Definitions:

Overregularization

A language acquisition error where children apply general grammar rules too widely.

First Word

The initial instance of meaningful spoken language produced by a child.

Preoperational

A stage in Piaget's theory of cognitive development (approximately ages 2-7) where children begin to engage in symbolic play but lack the ability to perform operations or use logic.

Coax

To persuade someone gently and persistently to do something or to obtain something by using flattery or gentle urging.