XYZ Buys a 24 Per Cent Share in ABC for $80

Multiple Choice

XYZ buys a 24 per cent share in ABC for $80 million. ABC's total net profit is $50 million and it pays $4 million in dividends to XYZ. Using the cost method, what would be the revenue and investment amounts at year-end for this investment?

A) $4 million and $80 million
B) $4 million and $84 million
C) $12 million and $80 million
D) $12 million and $92 million