Answer:
Option C. Debit Cash and credit Stock Investments
Explanation:
The reason is that in the equity method of recording the dividends receipts, it is always deducted from the stock investment and the relevant share of reported net income of the associate is added to the stock investment.
So mathematically,
Stock Investment Under Equity Method = Opening Value for the year + Share of Net Income - Dividend received
Stock Investment Under Equity Method = $300,000 + $160,000 * 25% + $60,000 * 25% = $325,000
The above treatment shows that the recording of dividends include credit to stock investment and the cash receipt is always debited.
So the double entry would be:
Dr Cash $15,000
Cr Dividends $15,000
So the option C is correct.
People who enjoy working with their hands might enjoy a career as a
chef. The correct answer is D. Chefs are cooks, as you are well-aware,
which means that they use their hands to prepare food. They are
constantly using their hands while chopping vegetables, cooking,
preparing dishes, so people who love using their hands as their most
important tool should consider getting a job as a chef.
To destory monopolies that were using their power to harm society.
Answer:
c. $3,200 favorable.
Explanation:
We know that
Total controllable cost variance = Budgeted overhead cost - actual overhead cost
where,
Budgeted overhead cost = Variable overhead + Fixed overhead
where,
Variable overhead = 40,000 units × $2 = $80,000
And, the fixed overhead = $72,000
So, the budgeted overhead = $152,000
And, the actual one is $148,800
So, the total controllable cost variance would be
= $152,000 - $148,800
= $3,200 favorable
Answer:
Explanation:
Given that:
a)
1$ = Can $1.12
It takes a value of 1 U.S dollar to have 1.12 Canadian dollars. This signifies that the U.S dollar is worth more than Canadian dollars.
b)
Assuming that the absolute Purchasing Power Parity PPP holds,
Since 1$ = Can $1.12, the cost in the United States of an Elkhead beer, if the price in Canada is Can$2.85 can be determined to be:
= 
= $2.545
c)
Yes, the U.S. dollar is selling at a premium relative to the Canadian dollar.
This is because we are being told that the spot exchange rate for the Canadian dollar is Can $1.12 & in six (6) months time the forward rate will be Can $1.14.
d)
The U.S dollar is expected to appreciate in value because it is trading at a premium in the forward market.
e)
Canada has higher interest rates. This determined by using the formula:
= 
where; n= numbers of years = 6 month/12 month = 0.5 year
Then;
= 0.0356
= 3.56%
