How much should be value of the investment

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Q1. In January 2019 "ABC" bought 25% of the shares of XYZ for €25 million. During 2019 XYZ had profits of €15 million and had declared dividends of €5 million (not paid yet). How much should be, by December 2019, the value of the investment in XYZ in ABC's consolidated accounts?

a. €25.00 million

b. €26.25 million

c. €27.50 million

d. €30.00 million

e. None of the above

Q2. In this case, how much should be the impact of XYZ on the consolidated P/L of ABC?

a. €1.25 million

b. €2.50 million

c. €5.00 million

d. €10.0 million

e. None of the above

Reference no: EM133085026

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