XYZ Buys a 24 Per Cent Share in ABC for $80m.ABC's

question 42

Multiple Choice

XYZ buys a 24 per cent share in ABC for $80m.ABC's total net profit is $50m and it pays $4m in dividends to XYZ.
-Using the cost method,what would be the revenue and investment amounts at year-end for this investment?

• A) $4m and $80m
• B) $4m and $84m
• C) $12m and $80m
• D) $12m and $92m

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Definitions:

Keystone Species

A species that has a disproportionately large impact on its ecosystem, influencing the types and numbers of other species in a community.

Pioneer Species

First species to colonize previously disrupted or damaged ecosystems, initiating an ecological succession that leads to a more biodiverse steady-state ecosystem.

Keystone Species

A vital species within an ecosystem whose presence significantly influences the biodiversity and stability of the environment.

Exotic Species

Organisms introduced to a new habitat where they are not naturally found, often causing harm to the local ecosystem and native species.