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Vlada [557]
2 years ago
13

What does the limited liability of the owners of stock in a corporation mean?

Business
1 answer:
azamat2 years ago
4 0

Answer:

Limited liability

Explanation:

The limited liability of the owners of stock in a corporation mean that the stockholders of a corporation can lose only what they have invested in the corporation. they have limited liability in which it mean that the shareholder are restricted by shares.

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ProForm acquired 70 percent of ClipRite on June 30, 2017, for $770,000 in cash. Based on ClipRite's acquisition-date fair value,
11Alexandr11 [23.1K]

Answer and Explanation:

The computation is shown below:

The amount of consolidated sales balance is  

Proform Sales 820,000

Cliprite Sales 640,000

Less: Intra-entity Sales -270,000

Consolidated Sales Balance $1,190,000

The amount of consolidated cost of goods sold balance is

Proform's Cost of Goods Sold Book Value 545,000

Cliprite's Cost of Goods Sold Book Value 410,000

Less: Intra-Entity Transfers -270,000

Adjusted Gross Profit Deferred in 2017 [(110,000 - 71,000) × 30%] -11,700

Deferral of 2018 Intra-Entity Gross Profit [(270,000 - 210,000) × 10%] 6,000

Consolidated Cost of Goods Sold Balance $679,300

The amount of consolidated operating expenses balance is  

Proform's Operating Expenses Book Value 120,000

Cliprite's Operating Expenses Book Value 110,000

Amortization of Intangible Assets 12,000

Consolidated Operating Expenses Balance $242,000

The amount of consolidated dividends balance is $0 as there is an elimination in consolidation.

The amount of net income attributed is  

Cliprite's Reported Income for 2018 120,000

Less: Amortization of Intangible Assets -12,000

Cliprite's Adjusted Net Income 108,000

Net Income Attributable to Non Controlling Interest (108,000 × 30%) $32,400

The amount of consolidated inventory balance is  

Proform's Operating Expenses Book Value 310,000

Cliprite's Operating Expenses Book Value 720,000

Intra-Entity Gross Profit [(270,000 - 210,000) ×  10%] -6,000

Consolidated Inventory Balance $1,024,000

The value of noncontrolling interest in subsidiary is  

30% of Opening Book Value [(870,000 + 300,000) × 30%) 351,000

Excess January 1 Intangible Allocation [(450,000 - 12,000 ÷ 2) × 30%)] 133,200

Net Income Attributable to Noncontrolling Interest 32,400

Dividends (70,000 ×  30%) -21,000

Non Controlling Interest, 12/31/18 $495,600

6 0
2 years ago
Assume milk is used to produce ice cream. Ceteris paribus, a decrease in the price of milk will cause the equilibrium price of i
MariettaO [177]

Answer:

Fall

Explanation:

Milk is an input in the production of milk.

decrease in the price of milk would increase the production of icecream.

An increase in production would lead to an increase in supply of milk.

When supply exceeds demand, equilibrium price drops.

I hope my answer helps you

5 0
2 years ago
Lakesha does not have enough in her bank account to use a debit card for the purchase of a bike she needs to get to work. She ha
Bezzdna [24]

Answer:

]-0]-]'-0]

Explanation:

7 0
2 years ago
Frisco Company's Merchandise Inventory account at year-end has a balance of $62,115, but a physical count reveals that only $61,
Lisa [10]

Answer:

Increase on cost of goods sold by $215, decrease in merchandize by $215.

Explanation:

With regards to the above information, the cost of goods sold will increase by $215, while the merchandize value would also decrease by $215.

Here, the books will be even out so that it would show there was a shrinkage at year end and beyond that which was purchased to have taken place.

4 0
2 years ago
Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business,
Flauer [41]

Answer:

Ayala Architects

Journal Entries:

Apr. 1 Debit Cash $22,770

Credit Common Stock $22,770

To record common stock for cash.

Apr. 2 Debit Rent Expense $1,138

Credit Cash $1,138

To record rent expense paid for cash.

Apr. 3 Debit Supplies $1,644

Credit Cash $1,644

To record Supplies paid for cash.

Apr. 10 Debit Accounts Receivable $2,403

Credit Service Revenue $2,403

To record services rendered on account.

Apr. 11 Debit Cash $885

Credit Deferred Revenue $885

To record cash receipt for services not yet rendered.

Apr. 20 Debit Cash $3,542

Credit Service Revenue $3,542

To record cash received for services rendered.

Apr. 30 Debit Salaries $1,896

Credit Cash $1,896

To record payment of salary.

Apr. 30 Debit Accounts Payable $379

Credit Cash $379

To record payment on account.

Explanation:

a) Data and Analysis:

Apr. 1 Cash $22,770 Common Stock $22,770

Apr. 2 Rent Expense $1,138 Cash $1,138

Apr. 3 Supplies $1,644 Cash $1,644

Apr. 10 Accounts Receivable $2,403 Service Revenue $2,403

Apr. 11 Cash $885 Deferred Revenue $885

Apr. 20 Cash $3,542 Service Revenue $3,542

Apr. 30 Salaries $1,896 Cash $1,896

Apr. 30 Accounts Payable $379 Cash $379

6 0
3 years ago
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