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What amount did cypress industries pay for its investment

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Question - 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. During the year, Shane earned net income of £160,000 and paid dividends of £40,000 and Cypress Industries earned net income of £280,000. At December 31, 2012, shares of Shane, Inc. were trading for £40 per share, and the value in the investment account on the books of Cypress was £395,000. What amount did Cypress Industries pay for its investment in Shane on January 1, 2012?

a. £365,000

b. £425,000

c. £325,000

d. £335,000

Reference no: EM132084134

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