Use the Information Below to Answer the Following Questions

question 26

Multiple Choice

Use the information below to answer the following questions:
On 1 January 2012, Sky-High Ltd acquired 100 000 shares (30% of the voting interest) in Down Ltd for $600 000 cash. On 30 June 2012, Down Ltd announced its earnings per share for the first 6 months of 2012 at $1.50 per share. On 20 November, Down Ltd paid dividends to shareholders at $0.90 per share. On 31 December 2012, Down Ltd announced its earnings per share for 2012 at $2.80 per share (i.e., $1.30 additional since 30 June) .
-If Sky-High Ltd used the cost basis,what dividend revenue did it record for the year ended 31 December 2012 in respect of its investment in Down Ltd?

• A) nil
• B) $90 000
• C) $190 000
• D) $280 000.

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Definitions:

Preconception Counseling

Guidance and information provided to couples or individuals about health and genetic factors that could affect a future pregnancy.

Prenatal Care

The health care provided to a pregnant woman and her developing baby before childbirth to ensure a healthy pregnancy.

Climacteric

A phase in the aging process of women and men, marked by changes that lead to the end of reproductive capacity in women (menopause) and a decline in sexual function in men.

Reproductive Capacity

The ability of an organism to produce offspring, often considered in terms of quantity and viability.