Singer Ltd Has Significant Influence Over the Operations of Opera

question 7

Multiple Choice

Singer Ltd has significant influence over the operations of Opera Ltd from a 16% ownership.Singer Ltd prepares consolidated financial statements.Opera Ltd paid a total cash dividend of $1 000 000 and reported a profit of $2 000 000 for the current year.Under the cost method how much revenue would be reported by Singer Ltd for this investment?

• A)$160 000
• B)$320 000
• C)$480 000
• D)Zero

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Definitions:

Units

This term refers to a measure of quantity, such as items or products, used in manufacturing and production.

Selling Expenses

Costs associated with the distribution, marketing, and sale of a product or service.

Administrative Expenses

Costs related to the general operation of a company, including expenses such as salaries of executive officers and costs of general services.

Variable

An element or factor that can change or vary, affecting the outcome of mathematical models, experiments, or financial projections.