Use the Information Below to Answer the Following Questions

question 23

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 dividend revenue would it record for the year ended 31 December 2012 in respect of its investment in Ping Ltd?

• A) nil
• B) $120 000
• C) $200 000
• D) $350 000.

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Definitions:

Rehearsal

The cognitive process of repeatedly practicing material to enhance memory retention.

Long-Term Memory

The phase of the memory process responsible for the storage of information over an extended period, potentially a lifetime.

Masking

A method in perceptual research where a visual stimulus is made less visible to the observer by the presence of another stimulus, hindering the ability to perceive or process the first stimulus.

Memory Recall

The process of retrieving information stored in long-term memory, bringing it into conscious awareness.