Answer:
Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.
Explanation:
Book value per share of Red Inc = $1.20 per share
As the value of share is revised just after the declaration but before distribution there will be gain on sale of investment.
Net gain = Sale price - Book value
= $3.40 - $1.20 per share = $2.2 per share
Total gain for the year end on June 30 will be
= $2.2 per share X 180,000 shares = $396,000 shares
Thus Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.
Answer:
patent 301,350 debit
cash 301,350 credit
franchise 633,600 debit
cash 633,600 credit
development expense 189,000 debit
cash 189,000 credit
year-end adjustment:
amortization expense 50,225 debit
patent 50,225 credit
amortization expense 31,680 debit
patent 31,680 credit
Explanation:
The patent and franchise will be activate as there is a certain possibility to produce positive cashflow in the future.
They will be adjusted at year-end for amortization:
301,350 / 6 = 50,225 amortization on patent
633,600 / 10 = 63,360 amortization on franchise
As it was concede on July 1st then, we will do half-year
63,360 / 2 = 31,680
The development cost will be treated as expense as there is no precise information that can determined the development cost which yield a positive outcome.
Answer:
People or team oriented
Explanation:
The best organization culture is there when there is no comparison between the people who are working at different departments, different levels, etc
The rules, procedures, policies are all not for any single person
Here if the high level managers involves the others in decision making process and seek their opinions for the betterment of an organization that this represents the team oriented as the whole organization is working as a team so the same is to be considered
Answer:$100
Explanation:
Accounting profit is total earnings less total cost.
Accounting profit = Total revenue - Total cost
$150 - $50 = $100
Economic profit = Accounting profit - Opportunity cost
$100 - ($20 ×5) = 0
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