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.

---

Definitions:

Group-oriented Messages

Communications designed to appeal to or target a specific group, often with the aim of promoting unity or a shared purpose within that group.

Breath-freshening Experience

An experience or product that makes one's breath smell fresher.

Individual-oriented Messages

Communications tailored to appeal or address personal attributes, needs, or preferences of an individual.

Moderately Intelligent

Describing a level of cognitive ability that is average or slightly above average, indicating reasonable problem-solving and learning capabilities.