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Komok [63]
3 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]3 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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Bad White [126]

Answer:

FV= $46,031.45

Explanation:

Giving the following information:

Monthly deposit= $450

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To calculate the final value, we need to use the following formula:

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FV= {450*[(1.0175^59) - 1]} / 0.0175 + 450

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5 0
3 years ago
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Zina [86]

Answer:

No

Explanation:

The trial balance shows the totals of all transactions that have been recorded. It has no way of knowing if there are additional transactions that have not been recorded.

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3 years ago
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Archy [21]

Answer:

Option C) Decrease in Total Assets , and No Effect on Equity

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6 0
3 years ago
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Answer:

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Explanation:

Base on the scenario been described in the question, slope measures changes in quantity demanded very accurately compared to elasticity. The main for this reason is that m, slope and elasticity are not the same concepts. Slope evaluates the

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