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

question 11

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 equity basis,what dividend revenue would it record for year ended 31 December 2016 in respect of its investment in Ping Ltd?

• A) $120 000
• B) $150 000
• C) $350 000
• D) None of the answers provided

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