XYZ Buys a 24 Per Cent Share in ABC for $80m.ABC's

question 42

Multiple Choice

XYZ buys a 24 per cent share in ABC for $80m.ABC's total net profit is $50m and it pays $4m in dividends to XYZ.
-Using the cost method,what would be the revenue and investment amounts at year-end for this investment?

• A) $4m and $80m
• B) $4m and $84m
• C) $12m and $80m
• D) $12m and $92m

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Definitions:

Classical Conditioning

A conditioning technique where, through recurrent pairing of two stimuli, a reaction initially caused by the second stimulus is eventually caused by the first stimulus alone.

Species-Specific

Pertaining or unique to a particular species.

Preparedness

A predisposition to quickly learn certain types of behaviors or to associate specific stimuli with certain responses due to evolutionary pressures.

Shaping

A method of training by which successive approximations toward a desired behavior are reinforced to teach a complex behavior.