Use the Information Below to Answer the Following Questions

question 28

Multiple Choice

Use the information below to answer the following questions:
On 1 January 2012, Yu Ltd acquired 100 000 shares (30% of the voting interest) in Ping Ltd for $900 000 cash. On 30 June 2012, Ping Ltd announced its earnings per share for the first 6 months of 2012 at $2.00 per share. On 20 November, Ping Ltd paid dividends to shareholders at $1.20 per share. On 31 December 2012, Ping Ltd announced its earnings per share for 2008 at $3.50 per share (i.e., $1.50 additional since 30 June) .
-If Yu Ltd used the cost basis,what would be the balance sheet value of its investment in Ping Ltd at 31 December 2012?

• A) $900 000
• B) $1 100 000
• C) $1 170 000
• D) $1 250 000.

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Definitions:

Articulating A Vision

The process of clearly expressing a future direction or goal of an organization or group to inspire and guide stakeholders.

Power Hungry

Having an insatiable desire for control, authority, or influence over others.

Loyal Followers

Individuals who consistently support and remain faithful to a leader, brand, or organization over time.

Empowerment

The process of giving individuals or groups more control over their lives or the situation they are in.