in 2008 zimt rsquo s earnings before taxes includes a contribution in millions from 605262

Zimt AG is a consumer products manufacturer headquartered in Austria. It complies with IFRS.

In 2008, Zimt held a 10 percent passive stake in Oxbow Limited that was classified as held-for-trading securities. During the year, the value of this stake declined by 3 million.

In December 2008, Zimt announced that it would be increasing its ownership to 50 percent effective 1 January 2009.

Franz Gelblum, an analyst following both Zimt and Oxbow, is curious how the increased stake will affect Zimt’s consolidated financial statements. Because Gelblum is uncertain how the company will account for the increased stake, he uses his existing forecasts for both companies’ financial statements to compare various alternative outcomes.

Gelblum gathers abbreviated financial statement data for Zimt (Exhibit 15-9) and Oxbow (Exhibit 15-10) for this purpose.

EXHIBIT 15-9 Selected Financial Statement Estimates for Zimt AG ( millions)

Year ending 31 December	2008	2009
Revenue	1,500	1,700
operating income	135	153
Net income	66	75
Total assets	1,254	1,421
Shareholders” equity	660	735

EXHIBIT 15-10 Selected Financial Statement Estimates for Oxbow Limited ( millions)

Year ending 31 December	2008	2009
Revenue	1,200	1,350
operating income	120	135
Net income	60	68
Dividend paid	20	22
Total assets	1,200	1,283
Shareholders” equity	660	706

In 2008, Zimt’s earnings before taxes includes a contribution (in millions) from its investment in Oxbow Limited closest to

a. (0.6) million.

b. 1.0 million.

c. 1.9 million.