Use the Following Information for Questions

question 112

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)£3,920,000.
• B)£3,200,000.
• C)£3,680,000.
• D)£4,800,000.

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Definitions:

Sporophyte

The diploid phase in the life cycle of plants and algae that produces spores.

Fern

One of a phylum of seedless vascular plants that reproduce by

Sori

Clusters of sporangia, often found under fern leaves, where the spores are produced.

Ferns

A group of non-flowering vascular plants that reproduce via spores and have leaves typically referred to as fronds.