<u>Answer:</u> The amounts have to be determined using fair value for plant and equipment and for long term debt.
<u>Explanation:</u>
Fair value method is based on the market price of the asset. The historical value of the assets is not used to consider the sale price of the asset. Fair value is where Company J and Company K both the parties have to accept the price based on the known facts of the assets.
Company J and Company K should both accept the price out of free will and should not be out of compulsion. Company J can report based on the financial statement fair value of the assets and long term debt.
<span>Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called: </span>Cumulative preferred stock
In cumulative preferred stocks, the amount of dividend usually given on a fixed-rate annually. But, it shall always be set aside before calculating the dividend for the common stock and the amount will be accrued for the next period if the dividend is not paid on current period.
The total retained earnings on 31st December 2016 is $197,100. The journal entry are attached below.
<h3>What is Retained Earnings?</h3>
Retained earning is basically the profits of the company which is kept aside to meet the future requirement of the company. It the amount which is left over after deducting all cost such as direct cost, indirect cost, income taxes and dividend.
The retained earning is used in the future projects or for buying the equipment for the company.
Learn more about retained earnings here:
brainly.com/question/14529006
#SPJ1
.
Answer:
See below
Explanation:
This transaction will affect the bank balance by increasing it with the check amount. The bank is cash (asset ) held in the bank. An increase in assets account is a debit. The bank A/c will be debited.
The check is received from Yogesh. Yogesh must have bought goods on credit and hence is an account receivable (asset). Since Yogesh has paid, his account decrease by the check amount. A decrease in assets is credited.
The journal entry will be
Bank A/c DR. Rs 4500
Yogesh A/c Cr. Rs 4500
The answer is D. 45 to 55%
