Use the Information Below to Answer the Following Questions

question 36

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 method,what would have been the impact of Ping Ltd's 31 December 2012 earnings announcement?

• A) Investment in Ping Ltd would have increased by $150 000.
• B) Dividend revenue would have increased by $150 000.
• C) Investment in Ping Ltd would have increased by $150 000 and dividend revenue would have increased by $150 000.
• D) There would be no impact.

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Definitions:

Expensive

Involving a high cost or requiring considerable resources, often more than what is considered average or necessary.

Monozygotic Twins

Also known as identical twins, these are two individuals who originate from a single fertilized egg, sharing identical genetic material.

Zygotes

The initial cell formed when a new organism is produced by the union of male and female sexual cells, containing all the genetic information necessary to form a new individual.

Genetically Identical

Organisms or cells that have the exact same genetic material, often referred to as clones.