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

question 19

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 equity method,the revenue recognised for this investment during the year would be:

• A) $4m.
• B) $12m.
• C) $50m.
• D) $0.

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Definitions:

Schizophrenia

A noteworthy mental dysfunction characterized by disruption in mental operations, sensory interpretations, affectivity, communicative proficiency, self-awareness, and lifestyle.

Psychosis

A mental disorder characterized by a disconnection from reality, which may include hallucinations and delusions.

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A severe mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality and personal relationships into fantasy and delusion, and a sense of mental fragmentation.

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