<u>Explanation:</u>
Some of those companies had a different entertainment niche that had great revenue potential for Disney. For example, The Muppets Studio focused on video productions featuring puppet characters, which grew popular among young children. While Marvel Entertainment and Lucas Films produce video animations and films that have reached the top of the charts.
It is because of these identified benefits that the acquisition was made.
Answer:
A. $30,500
Explanation:
As it did not elect fair value it choose for equity method.
We icnrease when income is delcare and decrease whn cash payment are distribute considering our percentage of participation.
200,000 beginning investment
+ 80,000 x 30% income = +24,000
- 50,000 x 30% dividends - 15,000
<u>+100,000 </u>x 30% income + 30,000
239,000
Half this investment is 119,500
amount received 150,000
gain n sale: 30,500
Answer:
Operating income 75,000
EBT 57,000
Net income ncome 34,200
Explanation:
Sales revenue 300,000
Cost of goods sold (160,000)
G&A expenses (40,000)
Selling expenses <u> (25,000) </u>
Operating income 75,000
loss on sale (22,000)
interest revenue 4,000
EBT 57,000
income tax expense
57,000 x 40% = (22,800)
Net income ncome 34,200
Answer: a. $5000 b. $35000 c. Adele
Explanation:
The balance sheet is a report which summarizes all of an entity's assets, the liabilities, and the equity at a given point in time.
Based on the balance sheet in the question, the following can be calculated:
a. The 754 adjustment will be the difference in the sale of interest and Susan's capital balance. This will be:
= Sale of interest - Dusan's capital balance
= $35,000 - $30,000
= $5000
b. Adele's basis in the acquired interest will be the value at which she acquired the interest. This will be = $35,000
c. Adele is the partner who receives deductions related to the step-up
Answer:
2.5%
Explanation:
Price at the beginning = NAV at the beginning × (1 + premium)
= 20 × 1.04 = 20.8
Price at the end = NAV at the end × (1 - premium)
= 20.90 × 0.91 = 19.019
NAV increase by $0.90 but price decrease by 1.781
Returns = (0.91 × 20.90 - 1.04 × 20 + 2.30) ÷ 1.04 × 20
= 0.519 ÷ 1.04 × 20
= 0.0249
= 2.49%
= 2.5%
OR
Returns = change in P + distribution / start of year P
= -1.781 + 2.30 / 1.04 × 20
= 0.519/20.8
= 0.0249
=2.49%
= 2.5%