Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment forE13,200. During the year, Sherman paid a cash dividend of £3.25 per share. At year-end, Shermanshares were selling for £34.50 per share. How much total revenues (all revenues) should berecognized from this investment during the year?Select one:Oa. $1900Ob. $700OC $1300Od. $600

Ans. Total revenue to be recognised is the total dividend received and the appreciation in the share…

Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a tradim E13,200. During the year, Sherman paid a cash dividend of £3.25 per share. At y shares were selling for £34.50 per share. How much total revenues (all revenues recognized from this investment during the year? Select one: 000

Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a tradim E13,200. During the year, Sherman paid a cash dividend of £3.25 per share. At y shares were selling for £34.50 per share. How much total revenues (all revenues recognized from this investment during the year? Select one: 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment for
E13,200. During the year, Sherman paid a cash dividend of £3.25 per share. At year-end, Sherman
shares were selling for £34.50 per share. How much total revenues (all revenues) should be
recognized from this investment during the year?
Select one:
Oa. $1900
Ob. $700
OC $1300
Od. $600

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