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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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