Answer:
$60,000
Explanation:
Green must only report the $60,000 received as preferred stock dividends since it owns 100% of the preferred stocks.
Since Green exercises significant influence over Axel, it will use the equity method. The equity method records common stock dividends as return of capital, not income. All the dividends received ($100,000 x 30% = $30,000) should reduce the investment account on Green's balance sheet.
Answer:
D. Either Meredith or JaZz will own a majority equity stake, but we do not know which one based on the announcement.
Explanation:
Given the information/announcement on strategic alliance, it difficult to point out which of the two company will have a majority equity stake. So either the art company or the paper company will own majority equity stake but we cannot point out which of the two companies based on the announcement that was made concerning the alliance.
a separation between ownership and management is most likely to occur in a : Corporation
In a corporation, the owners (or more commonly known as the share holders) tend to higher the executive that they believe is capable to manage the company
hope this helps
Marginal utility is the extra satisfaction gained from consuming one more unit of a good.
