1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zloy xaker [14]
2 years ago
12

Silvia Company acquires a 30% interest in Small Company. The fair value of Small's inventory exceeds its carrying value by $100,

000. During the subsequent year, the inventory is sold. As a result of the sale of inventory, investment revenue would _______.
Business
1 answer:
beks73 [17]2 years ago
7 0

Answer:

The revenue that the investment in the company would increase by $100,000.

Explanation:

Though the International Accounting Standard IAS 2 Inventories says that the inventory must be recorded at lower of:

  • Cost
  • Net Realizable Value (Fair Value less Cost to Sell)

This means though the Net realizable value increases but the cost remains the lower. This means their must not be any changes made to inventory account.

The profit earned from the increase in inventory value will be reflected in the income which will increase the net worth of the investment. So the increase in investment revenue would be by $100,000.

You might be interested in
Who would most likely be your target audience if you created a slide presentation that had a yellow background and purple text?
liq [111]
Your answer would be C

8 0
2 years ago
Read 2 more answers
Simko Company issued $750,000, 8-year, 6 percent bonds on January 1, 2018. The bonds were issued for $710,000. Interest is payab
11Alexandr11 [23.1K]

Answer:

Bond issuance:

Dr cash                                          $710,000

Dr discount on bonds payable    $40,000

Cr bonds payable                                           $750,000

The payment of interest on December 31, 2018:

Dr interest expense     $50,000

Cr discount on bonds payable    $5000

Cr cash                                           $45,000

Explanation:

The bonds were issued at a discount to their face value, as a result, the discount on bonds payable is computed thus:

discount on bonds payable=$750,000-$710,000=$40,000

Bonds payable would be credited with $750,000 while cash and discount on bonds payable would be debited with $710,000 and $40,000 respectively

annual discount amortization=$40,000/8=$5000

annual coupon=$750,000*6%=$45000

6 0
2 years ago
Gwen owns 357 shares of common stock in a software company. The software company
igomit [66]

Answer:

Dividend Yield = 0.25423 or 25.423% rounded off to 25.42%

Explanation:

The dividend yield is the return provided by a stock in form of dividend which is expressed as a percentage of the current market price. Thus, dividend yield can be calculated as follows,

Dividend Yield = Annual Dividend / Current Market Price

Dividend Yield for Gwen will be,

Dividend Yield = 3.75 / 14.75

Dividend Yield = 0.25423 or 25.423% rounded off to 25.42%

3 0
2 years ago
Complete the sentence below using a possessive pronoun. Those shoes aren't
ValentinkaMS [17]
Those shoes aren't mine
5 0
3 years ago
Jennifer received news that she is getting a 5% raise. However, the Bureau of Labor Statistics just reported that prices are ris
Feliz [49]

Answer:

Jennifer is losing purchasing power by 2%.

Explanation:

An increase in prices indicates a decrease in the purchasing power of the consumers. An increase in income means an increase in the purchasing power of the consumers.  

A 5% raise means that Jennifer's income will increase by 5% and so will her purchasing power. But at the same time, a price rise by 7% means that her purchasing power will decrease by 7%.  

This means that overall her purchasing power will decrease by 2%.

4 0
3 years ago
Other questions:
  • Let’s suppose that a bank has $600 million in total deposits. This bank is subject to a 20% required reserve ratio and has $100
    8·1 answer
  • Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of
    14·1 answer
  • Genetically modified soybean seed is an example of a new technology that has increased productivity. as a result, this new techn
    15·1 answer
  • When should a firm consider expanding from domestic trade to international trade?
    11·1 answer
  • . A company is authorized to issue 750,000 shares of $5 par value common stock. Prepare journal entries to record the following
    8·1 answer
  • GASB requires enterprise funds to be used under which of the following circumstances? A) When the legal requirement exists that
    5·1 answer
  • Which education and qualifications are especially useful for Food Products and Processing Systems careers? Check all that apply.
    8·2 answers
  • Question text
    10·2 answers
  • Benjamin Franklin said, “Beware of little expenses. A small leak will sink a great ship. ” What does this mean to a person tryin
    15·1 answer
  • Supervisors are apt to be directly involved in which activities related to human resources? (Select all that apply) Multiple sel
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!