Answer:
2) Debit to Cash (for dividends received from the investee), and a Credit to Dividend Revenue.
Explanation:
Whenever the investment is made in shares of a company where the investor can exercise significant influence, then equity method is used.
Under equity method, it is that all incomes of investee company are incomes of investor company.
And any amount of income received as a distribution is deducted from the carrying value of investment, as reduces the cost of investment.
Thus, any dividend received is debited and investment account is credited.
Dividend is never treated as dividend revenue.
Thus, option 2 is not correct.
Answer:
Option (B) is correct.
Explanation:
Equivalent units of production(EUP) - Materials:
= Transferred out + Ending balance
= 10,451 units × 100% + 3,483 units × 100%
= 10,451 + 3,483
= 13,934
Equivalent units of production(EUP) - conversion:
= Transferred out + Ending balance
= 10,451 units × 100% + 3,483 units × 36%
= 10,451 + 1,253.88
= 11,704.88
Material cost = 
Material cost = 
= 73,157
Conversion cost = 
Conversion cost = 
Conversion cost = 
= 53,715
Therefore,
Total cost of units completed during the period(10,451 units):
= Material cost + Conversion cost
= 73,157 + 53,715
= 126,872
Since Intel has a history of effectively transforming
R&D investment into income, the pro-forma version of the ration seems to be
of more significant. A company starting, for instance, would be unalike: its
track record would be much poorer and probabilities are that the criteria set
in place would not be as rough as Intel’s. Therefore, it appears that the significance
hinge on the kind of business: if future benefit is more of a doubt, then
R&D should be expensed. The contradictory is true if benefit is almost certain.
Intel also has the advantage of being very vibrant with its R&D objectives
and having exact, measurable standards. They note obviously what the funds are apportioned
to and what the end outcomes should be of the growth.
Answer:
d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.
Explanation:
A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.
A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.
Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid
wherein CMP= Current Market Price
A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.
Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.
Answer:
Predetermined manufacturing overhead rate= $14.8 per machine hour
Explanation:
Giving the following information:
Factory 1
Estimated factory overhead= $18,500,000
Estimated machine hours for year 1,250,000
T<u>o calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 18,500,000/1,250,000
Predetermined manufacturing overhead rate= $14.8 per machine hour
