Use the Information Below to Answer the Following Questions

question 11

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 equity basis,what would be the balance sheet value of its investment in Ping Ltd at 31 December 2012?

• A) $780 000
• B) $1 130 000
• C) $1 250 000
• D) $900 000.

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Definitions:

Woo Journalists

The act of attempting to influence or curry favor with journalists or members of the media, often to ensure positive coverage.

Gold Standard

The Gold Standard is a monetary system in which a country's currency or paper money has a value directly linked to gold, allowing for the conversion of currency into a specified amount of gold.

Straitjacket

A garment designed to restrain someone, often used to prevent self-harm or harm to others, especially in psychiatric settings.

Economic Strategies

Plans or methods implemented to manage and improve an economy or individual financial standing.