At the Beginning of 20X1, Anwar Ltd

question 11

Multiple Choice

At the beginning of 20X1, Anwar Ltd. acquired 15% of the voting shares of Cruz Co. for $150,000. Anwar does not have any significant influence over Cruz. Anwar reports the investment using the cost method. In 20X1, Cruz earned net income of $70,000 and paid dividends of $40,000. In 20X2, Cruz earned net income of $80,000 and paid dividends of $100,000. At the end of 20X2, what is the balance of Anwar's "Investment in Cruz" account?

• A)$150,000
• B)$150,150
• C)$154,500
• D)$172,500

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Definitions:

Family Therapy

A type of psychotherapy that involves treating a family system rather than individual members, aiming to improve communication and resolve conflicts.

Reduce Guilt

The process or actions taken to lessen feelings of responsibility or remorse for perceived wrongs or mistakes.

Expressed Emotion

The general level of criticism, disapproval, hostility, and intrusiveness expressed in a family. People recovering from schizophrenia are considered more likely to relapse if their families rate high in expressed emotion.

Schizophrenia

A chronic psychological condition characterized by a disruption in the connection among cognition, emotion, and conduct, resulting in incorrect perceptions and unsuitable behaviors.