Answer:
Turnover Company
The net income of Turnover will increase by $500,000.
Explanation:
a) Data and Calculations:
Turner Company's shareholding in ICA = 10%
ICA pays dividend totalling $5 million
Turner's share of dividend = $500,000 ($5 million * 10%)
b) This is not based on equity accounting. Instead, the investment will be reported at fair value. Equity accounting method will be applied in recording Turner's investments in ICA Company, if the ownership interest is valued at 20–50% of the stock.
c) The $500,000 dividends received from ICA Company will be reported in the Income Statement of Turner Company as other income, unless Turner ordinarily buys and sells stocks. The 10% shareholding does not amount to significant control or influence for the accounts of Turner and ICA to be consolidated.
Answer:
The quick ratio can be worked out as below;
Explanation:
Quick ratio=Current Assets excluding inventory stocks/Current liabilities
Current Assets=210+800
Current liabilities=$1,260
Quick Ratio =($210+4800)/$1,260
Quick Ratio=1.25
Answer: $300,000
Explanation:
Total expected costs = cost incurred to date + estimated cost to complete
= 1,200,000 + 3,600,000
= 4,800,000
= 0.25
= 25%
Profit = contract revenue - Total expected costs
= $6,000,000 - 4,800,000
= $1,200,000
Cumulative gross profit = Profit × Percentage of completion
= $1,200,000 × 0.25
= $300,000
Therefore, Red Builders should have recognized profit at the end of year 1 in the amount of $300,000.
Answer:
D.
Explanation:
In this scenario when Rob stops nagging Jeff he is implementing the behavior modification known as avoidance learning. This technique theorizes that and individual tends to remove themselves from a scenario in order to avoid certain bad or stress inducing situation. Which Rob does in order to avoid having to deal with Jeff being cracking jokes and goofing off later.
Answer:
3.28%
Explanation:
Current yield = Annual Coupon payment / Market price of the bond
Annual Coupon payment = 3.25% of face value = 3.25% * $100
= $3.25 "value is assumed at $100"
Market price of the bond = $99.04
Therefore
, Current yield = $3.25 / $99.04
= 0.03281
= 3.28%
