On January 1^st, 2011, ABC Inc -Assuming That ABC Adheres to IFRS, What Would Be the Outstanding

question 26

Multiple Choice

On January 1^st, 2011, ABC Inc. purchased 30% of the outstanding voting shares of DEF Inc, a company whose operations rely heavily on ABC's managerial involvement, for $600,000. On that date, DEF's net assets had a fair value equivalent to their book values.
During 2011 and 2012, DEF Inc. earned income and paid dividends as follows:
$\begin{array}{|l|l|l|}\hline & \text { Income } & \text { Dividends } \\\hline 2011 & \$ 120,000& \$ 20,000 \\\hline 2012 & \$ 180,000& \$ 30,000 \\\hline\end{array}$

-Assuming that ABC adheres to IFRS, what would be the balance in the Investment in Associate - DEF Inc. account on December 31^st, 2012?

• A) $600,000.
• B) $675,000.
• C) $720,000.
• D) $630,000.

---

Definitions:

Osmotic Balance

The regulation of water and solute concentrations in organisms to maintain a stable internal environment.

Systemic Circuit

This component of the cardiovascular system is responsible for transporting oxygen-rich blood from the heart to the rest of the body and bringing oxygen-poor blood back to the heart.

Large Veins

Large veins are blood vessels that carry deoxygenated blood toward the heart, excluding the pulmonary and umbilical veins.

Systemic Circuit

The part of the cardiovascular system that carries oxygenated blood away from the heart to the body and returns deoxygenated blood back to the heart.