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

question 19

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 equity method,the revenue recognised for this investment during the year would be:

• A) $4m.
• B) $12m.
• C) $50m.
• D) $0.

---

Definitions:

Pakistan

A South Asian country formed in 1947, known for its diverse cultures, languages, and landscapes, sharing borders with India, Afghanistan, Iran, and China.

Affirmative Action

Policies or practices intended to address past injustices and discrimination by providing opportunities in education and employment to historically disadvantaged groups.

Controversial Policy

A policy that generates public disagreement or debate due to differing opinions on its implications, effectiveness, or ethical considerations.

Economic Theory

The study and understanding of how economies work, encompassing a wide array of concepts and principles regarding wealth production and distribution.