Use the Information Below to Answer the Following Questions

question 42

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 method,what would have been the impact of Ping Ltd's 30 June 2012 earnings announcement?

• A) Dividend revenue would have increased by $200 000.
• B) Investment in Ping Ltd would have increased by $200 000.
• C) Investment in Ping Ltd would have decreased by $200 000.
• D) No record would have been made.

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Definitions:

Temperament

The inherent part of an individual's personality, including mood, behavior tendencies, and emotional responses.

Behavioral Style

The manner in which an individual behaves or conducts themselves, often consistent across different situations.

Emotionality

The quality of being easily aroused strong emotions and possessing a high level of emotional responsiveness.

Vision Acuity

The clarity or sharpness of vision, typically assessed by the ability to discern letters or numbers at a given distance according to a fixed standard.