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Komok [63]
4 years ago
7

Rochester Corp. holds a 15% equity investment in LaCrosse Inc. Reedsburg Investments holds 45% of LaCrosse’s stock. On October 1

, 2017, LaCrosse declares and pays dividends to its stockholders. How will the dividend affect each company’s net income for the year? Listed First Rochester Listed Second Reedsburg
Business
1 answer:
IceJOKER [234]4 years ago
4 0

Answer:

Rochester Corp

Increase

Reedsburg Investments

No effect

Explanation:

Rochester Corp will Increase and Reedsburg Investments will show No effect

Therefore Rochester Corp. should go ahead and use the fair-value method in order to account for its own investment in LaCrosse.

This means the dividend would increase the net income while the Payment of dividends would tend to Increase the investment account on Reedsburg’s balance sheet, but will have or shown no effect on its income statement.

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Advocard [28]

Answer:

B

Explanation:

4 0
3 years ago
Which of the following factors, by itself, requires a corporation to comply with the reporting requirements of the Securities Ex
Ludmilka [50]

Answer:

d.Shares listed on a national securities exchange.

Explanation:

The primary purpose of enacting the securities exchange act of 1934 was to regulate securities and transactions in the financial or money markets. The act ensures fairness in financial dealings, thereby creating investor confidence.

For it to achieve its objectives, the securities exchange act contains mandatory disclosure requirements that ensure investors have access to relevant and accurate information to make decisions. The disclosures have to be made at crucial times to aid in investment decisions. All companies listed in the stock exchange are required to abide by the requirements of the exchange act.

6 0
3 years ago
Major Corp. is considering the purchase of a new machine for $5,000 that will have an estimated useful life of five years and no
Mila [183]

Answer:

payback 2.5 years

Explanation:

the payback will be the point in time at which the project cash flow equal the invesmtent.

This method do not consider the time value of money so we don't have to adjust any period cashflow or outflow.

investment: 5,000

increase in cash-flow 2,000

Investment/cash flow = 5,000 / 2,000 = 2.5 years

The depreciation are not considered as this are not cash flow.

3 0
3 years ago
Manufacturers use wholesalers and retailers becauseA. they have no other choice.B. they do not cost much.C. they create value fo
KiRa [710]

Answer:  Option C

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The retailer is the entity that deals with the final consumer in the market. The retailer creates value to the customer by making the product available in small distance, and in timely manner.

Thus, the retailer is sued by manufacturer and wholesaler as they create value to the customer.

4 0
4 years ago
Current assets and current liabilities for Brayden Company are as follows: 20Y9 20Y8 Current assets $498,600 $532,400 Current li
GuDViN [60]

Answer:

Working Capital -2019  =$229300

Working Capital -2018 = $230900

Explanation:

Working capital is the operating capital of the business that is used in the day to day running or the business and is a metric for the liquidity of the business. It is necessary for the operations of the business and is calculated as the difference between the current assets and the current liabilities.

Working Capital = Current Assets - Current Liabilities

Working Capital -2019 = 498600 - 269300  =$229300

Working Capital -2018 = 532400 - 301500  = $230900

4 0
3 years ago
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