NBO purchased 1,000 shares of HSBC at a cost of OMR 0.100 per share. It also paid OMR 10 for transaction cost. The investment was classified as Available for Sale. Transaction cost is recognized as expense. To record the purchase of shares, NBOs investment account will be debited at what amount?

a.

OMR 100

b.

OMR 80

c.

OMR 1000

d.

OMR 120

The Shell Company purchased 1,000 shares of Oman Oil Company at a cost of OMR 0.100 per share. It also paid OMR 20 for transaction cost. The investment was classified as Held for Trading. The amount of cash that will be credited in the books of Shell is:

a.

OMR 100

b.

OMR 80

c.

OMR 120

d.

OMR 20

Samsung purchased 30% of the outstanding voting shares of Huawei for $70 million cash. This investment gives Samsung significant influence over the operations of Huawei. At the end of the year Huawei had Net Income of $5 million. How will Samsung record their share in net income of Huawei?

a.

Dr Investment $5 million; Cr Income from Investment $5 million

b.

Dr Income from Investment $5 million; Cr Investment $5 million

c.

Dr Investment $1.5 million; Cr Income from Investment $1.5 million

d.

Dr Income from Investment $1.5 million; Cr Investment $1.5 million