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Lady bird [3.3K]
3 years ago
9

Anchor Co. owns 40% of Main Co.'s common stock outstanding and 75% of Main's noncumulative preferred stock outstanding. Anchor e

xercises significant influence over Main's operations. During the current period, Main declared dividends of $200,000 on its common stock and $100,000 on its noncumulative preferred stock. What amount of dividend income should Anchor report on its Income Statement for the period related to its investment in Main?
Business
1 answer:
dmitriy555 [2]3 years ago
8 0

Answer:

155,000

Explanation:

Anchor Co. owns 40% of Main Co.'s common stock outstanding and

75% of Main's noncumulative preferred stock outstanding.

Anchor exercises significant influence over Main's operations.

During the current period, Main declared dividends of

$200,000 on its common stock and

$100,000 on its noncumulative preferred stock.

The amount of dividend income that Anchor should report on its Income Statement for the period related to its investment in Main is:

Ordinary dividends 0.40 x 200,000 = 80,000

Preference dividends 0.75 x 100,000 = 75,000

Total dividends = 155,000

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The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called:
stiv31 [10]

Answer:

C) Capital investment analysis

Explanation:

Investment in fixed assets is capital investment, and fixed assets are capital assets that are purchased for long-term use (usually longer than 1 year), for example: land, buildings, or equipment.

Therefore, the financial analysis of investments in capital assets is called capital investment analysis.

7 0
2 years ago
Bonnie and Clyde each own one-third of a fast-food restaurant, and their 13-year-old daughter owns the other shares. Both parent
yanalaym [24]

Answer:

Net income = $180,000

- salaries = ($30,000 + $35,000 + $10,000 = $75,000)

adjusted net income = $105,000

the adjusted net income must now be divided equally between the 3 partners:

  • Bonnie: $35,000
  • Clyde: $35,000
  • daughter: $35,000

Their yearly gross income:

  • Bonnie: $35,000 + $30,000 = $65,000
  • Clyde: $35,000 + $35,000 = $70,000
  • daughter: $35,000 + $10,000 = $45,000

total taxable income = $65,000 + $70,000 + $45,000 = $180,000

7 0
3 years ago
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2019, she sells the following long-term assets u
mel-nik [20]

Answer:

Tax Liability  = $59,170

Explanation:

Profit on building = 234,000-(204,000-56,000)

Profit on building = $86,000

Loss on equipment = 84,000 - (152,000-27,000)

Loss on equipment = $41,000

Net profit = Profit on building - Loss on equipment

Net profit = $86,000 - $41,000

Net profit = $45,000

Taxable income before transaction = $194,500

Total taxable income = $194,500 + $45,000

Total taxable income = $239,500

According to tax rules

Tax Liability  = ($194,500 - $85,650)28% + 17,442 + ($45,000 )(25%)

Tax Liability  = $47,920 + $11,250

Tax Liability  = $59,170

5 0
2 years ago
On May 10, 2020, Cullumber Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay t
Likurg_2 [28]

Answer:

Date                 Particular                         Debit    Credit

May 10, 2020  No Entry (Note 1)                $0     $0

                         (To record contact entered into)

June 15, 2020  Account Receivable A/c  $1,810

                                To Sales Revenue A/c            $1,810

                         (To record Sales)

June 15, 2020   Cost of goods sold A/c.    $1,050

                                To Inventory A/c                        $1,050

                         (To record cost of goods sold)

July 15, 2020     Cash A/c                             $1,810

                                 To Account Receivable A/c      $1,810

                          (To record payment received)  

8 0
2 years ago
An analysis and aging of the accounts receivable of Hugh Company at December 31 revealed the following data: Accounts Receivable
Hitman42 [59]

Answer:

$844,000

Explanation:

Given that,

Accounts Receivable = $900,000

Credit balance of Allowance for Doubtful Accounts per books before adjustment = $50,000

Expected amount of uncollectible = $56,000

Bad debt expense at the end of the period is determined by subtracting the credit balance of allowance for doubtful accounts from the expected amount of uncollectible.

Bad debt expense:

= Expected amount of uncollectible - Credit balance

= $56,000 - $50,000

= $6,000

At the end of the period, the allowance for doubtful accounts has a balance of $56,000 that are to be uncollectible.

The cash realizable value of the accounts receivable at December 31, after adjustment, is determined by simply subtracting the Allowance for doubtful accounts  from the accounts receivable. It is calculated as follows:

= Accounts Receivable - Allowance for doubtful accounts

= $900,000 - $56,000

= $844,000

4 0
3 years ago
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