XYZ Buys a 24% Share in ABC for $80m

question 37

Multiple Choice

XYZ buys a 24% 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.

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Liter

A metric unit of volume equal to 1,000 milliliters or about 0.264 gallons.

Kilograms

A unit of mass in the metric system equal to 1,000 grams.

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A mass measurement unit representing 0.001 of a kilogram.

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A unit of weight commonly used in the United States, equal to 0.453592 kilograms.