On 1 January 2016,Yu Ltd Acquired 100 000 Shares (30

question 27

Multiple Choice

On 1 January 2016,Yu Ltd acquired 100 000 shares (30 per cent of the voting interest) in Ping Ltd for $900 000 cash.On 30 June 2016,Ping Ltd announced its earnings per share for the first six months of 2016 at $2.00 per share.On 20 November,Ping Ltd paid dividends to shareholders at $1.20 per share.On 31 December 2016,Ping Ltd announced its earnings per share for 2016 at $3.50 per share (i.e. ,$1.50 additional since 30 June) .
-If Yu Ltd used the cost basis,what would be the balance sheet value of its investment in Ping Ltd at 31 December 2016?

• A) $900 000
• B) $1 100 000
• C) $1 170 000
• D) $1 250 000

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Definitions:

Silent Authority

A form of power or influence exerted by an individual based on their position or role within an organization, without explicitly manifesting it.

Persuasion

The process of influencing or convincing others to change their beliefs, attitudes, or actions through argument, reasoning, or appeal.

Assertiveness

The quality of being self-assured and confidently expressing one's rights, desires, or feelings in a way that is respectful to others.

Hard Influence Tactic

A coercive strategy used to influence others' actions or decisions by exerting power or pressure, similar to hard influence tactics with emphasis on control.