XYZ Buys a 24% Share in ABC for $80m

question 2

Multiple Choice

XYZ buys a 24% share in ABC for $80m.ABC's total net profit is $50m and it pays $4m in dividends to XYZ.Using the equity method,the value of the investment in ABC would be recorded at year-end as:

• A) $80m
• B) $88m
• C) $92m
• D) $19m.

---

Definitions:

Skeletal Muscle

A type of striated muscle that is attached to bones by tendons and is involved in the movement of the skeletal system.

Myelomeningocele

A type of spina bifida where the spinal canal and the backbone don't close before birth, resulting in damage to the spinal cord and nerves.

Hydrocephalus

A condition characterized by an abnormal accumulation of cerebrospinal fluid within the cavities of the brain, potentially causing increased pressure and swelling.

Craniostenosis

A condition characterized by the premature fusion of one or more sutures of an infant's skull, affecting skull and brain growth.