Use the Following Information for Questions $£ 2,400,000$ And Paid Cash Dividends Of

question 72

Multiple Choice

Use the following information for questions . Desmond Corporation owns 3,000 of the 10,000 outstanding ordinary shares of Wetmore Corporation. During 2011, Wetmore earned $£ 2,400,000$ and paid cash dividends of $£ 800,000$ .
-What balance should Desmond report on its December 31, 2011 statement of financial position for the investment account if the beginning of the year balance in the account was $£ 3,200,000 ?$

• A) \(\quad £ 3,920,000\).
• B) \(\quad £3,200,000\).
• C) \(\quad £ 3,680,000\).
• D) \(\quad £ 4,800,000\).