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What percentage of xy income would ab record

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AB, KL and XY are all public companies. AB owns 70% of the common shares of KL and 40% of the common shares of XY. In addition, KL owns 20% of the common shares of XY.

Problem 1: What percentage of XY's income would AB record, if AB used the equity method?

Option 1: 40%
Option 2: 57%
Option 3: 54%
Option 4: 60%

Reference no: EM132835277

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