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

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