Use the Following Information to Solve the Following Questions

question 32

Multiple Choice

Use the following information to solve the following questions:
On January 1, 2020, Abalone Ltd. acquired 30% of Flounder Corp.'s common shares for $ 240,000. During 2020, Flounder reported net income of $ 100,000 and paid total dividends of $ 60,000. Abalone's 30% interest in Flounder gives Abalone the ability to exercise significant influence over their operating and financial policies. During 2021, Flounder reported net income of $ 150,000 and paid total dividends of $ 30,000 on April 1 and $ 40,000 on October 1. On July 1, 2021, Abalone sold half of its shares in Flounder for $ 158,000 cash.
-The carrying amount of this investment in Abalone's December 31, 2020, statement of financial position should be

• A) $ 252,000.
• B) $ 240,000.
• C) $ 270,000.
• D) $ 275,000.

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Definitions:

Modeling

The process of observing and imitating a specific behavior from others, often a mechanism of learning in social contexts.

Role-Playing

A method used in psychology and education where individuals assume roles and act them out in a controlled setting to explore behaviors, thoughts, and emotions.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or unhealthy thought patterns.

Rational Response

A thought or action that is based on reason and logic, often as a counter to emotional or irrational reactions.