On January 1 2012, Cypress Industries purchased 25% of the


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On January 1 2012, Cypress Industries purchased 25% of the ordinary shares of Shane,Inc. The investment enables Cypress to exert significant influence over Shane, Inc. Duringthe year, Shane earned net income of £160,000 and paid dividends of £40,000 andCypress Industries earned net income of £280,000. At December 31, 2012, shares ofShane, Inc. were trading for £40 per share, and the value in the investment account onthe books of Cypress was £395,000. What amount did Cypress Industries pay for itsinvestment in Shane on January 1, 2012? a.£365,000 b.£425,000 c.£325,000 d.£335,000 mariafeportugal
posted a question · May 09, 2016 at 4:27am

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