Use the Information Below to Answer the Following Questions

question 8

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 equity basis,what revenue would it record for the year ended 31 December 2012 in respect of its investment in Down Ltd?

• A) $90 000
• B) $150 000
• C) $190 000
• D) $280 000.

Learn about genetic diseases, congenital conditions, and structural anomalies in newborns.

Develop a basic knowledge of medical coding and its importance in patient care documentation.

Understand the concept and rationale behind Bad Debt Expense and its necessity in business operations.

Identify the reporting and impact of Bad Debt Expense on financial statements.

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Definitions:

Negligence Action

A legal case brought against a party who is accused of failing to exercise a level of care that a reasonable person would in the same situation, resulting in harm.

Established Requirements

Specific criteria or conditions that are defined and set in place for the fulfillment of tasks or obligations.

Compulsory Insurance

Insurance that is legally required for individuals or entities to have, such as auto insurance or workers' compensation insurance.

Insurance Role

The function or part played by an insurance entity or professional, involving risk assessment, policy underwriting, and claim processing.