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lana66690 [7]
3 years ago
10

Punch Corporation acquired 80% ownership of Jud Corporation in 2017, at underlying book value. On that date, the fair value of n

oncontrolling interest was equal to 20% of the book value of Judy. Punch purchased inventory from Judy for $75,000 on August 15, 2018, and resold 80% of the inventory to unaffiliated companies on December 2, 2018, for $100,000. Judy produced the inventory sold to Punch for $50,000. The companies had no other transactions during 2018. Based on the information given above, what amount of consolidated net income will be assigned to the controlling interest for 2018?
Business
1 answer:
Ilia_Sergeevich [38]3 years ago
6 0

Answer:

The amount of consolidated net income that will be assigned to the controlling interest for 2018 is $ 48,000.

Explanation:

In order to calculate consolidated net income profit and loss on intra group transactions are eliminated or not taken into account. So in order to calculate profit cost incurred by group is taken as cost of good sold and sales that is made to third party will be taken as revenue. Detail calculations are given below.

Revenue           $ 100,000

COGS               ($   40,000)      (50,000 *80%)

Profit                 $   60,000-A

Consolidated net income controlling interest = A * 80% = $ 48,000

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On January 1, Year 1, Samuel Company leases equipment from Lease Corp. The lease agreement specifies five annual payments of $50
Marrrta [24]

Answer:

Cash (Dr.) $50,000

Lease Receivable (Cr.) $50,000

Explanation:

Lessor is the person who leases the item to gain financial benefit from the asset user lease. Lessee is a person who uses the assets but does not owns it so he pays lease rentals. In the given scenario the lease recoding at inception in the lessor books will be cash debit and lease receivable credit.

4 0
3 years ago
As utility companies tend to serve a whole market exclusively, they are known as ______ because the governments involved believe
kykrilka [37]

Natural monopoly  tends to serve a whole market exclusively.

<h2>What is Natural Monopoly?</h2>

A natural monopoly is a sort of monopoly that frequently arises as a result of the high start-up costs or considerable economies of scale of operating a business in a particular industry, which can result in significant barriers to entry for potential competitors. In a certain sector or region, a corporation with a natural monopoly might be the exclusive supplier of a given good or service. In industries that need specialized technology, raw materials, or other elements to function, natural monopolies may develop.

<h3>Key Features of Natural Monopoly</h3>
  • A natural monopoly is a special kind of monopoly that develops when there is only one company that can effectively provide the service in a particular area due to high start-up costs and considerable economies of scale.
  • A business with a natural monopoly may be the exclusive supplier of a good or service in a given sector or region.
  • Natural monopolies are permitted when one firm can provide a good or service for less money than any potential rival, but they are frequently very tightly controlled to safeguard consumers.

Learn more about Natural monopoly here:

brainly.com/question/2182872

#SPJ4

7 0
1 year ago
Pete the Pizza Man produced $87,000 worth of pizzas in the past year. He paid $39,000 to employees, paid $11,000 for vegetables
Ne4ueva [31]

Answer:

$133,000

Explanation:

We can find Pete's total contribution to GDP by adding up the following numbers:

$87,000 worth of pizzas - because finished goods are part of GDP

$39,000 paid to employees - because wages are part of GDP

$5,000 paid in taxes - taxes are part of GDP because they are government revenue

$2,000 of inventories at the end of year - end-of-year inventories are included in GDP

Therefore: $87,000 + $39,000 + $5,000 + $2,000 = $133,000

the $11,000 worth of ingredients are not included in GDP because GDP only accounts for finished goods and services.

5 0
3 years ago
Brown &amp; Smith, Inc. engages in the design, development, making, and retail selling of designer jewelry in North America. Bef
Serga [27]

Answer:

rapid prototyping

Explanation:

Rapid prototyping (RP) is a family of manufacturing methods to make engineering prototypes in the minimum possible delivery times, based on a model of the article made in a computer-aided design system (CAD)

Rapid prototyping is an excellent way to check the functionality, dimensions and design characteristics of the designs, without going through the usual long prototyping process that requires specific technical and experienced tools.

3 0
3 years ago
If the number of demanders for electric cars increases at the same time as the number of suppliers of electric cars increases, w
Dmitriy789 [7]

Answer:

(A) The equilibrium quantity will increase.

Explanation:

An increase in demand and supply of electric cars would shift the demand and supply curves to the right.

Equilibrium quantity would increase.

Price would not change.

I hope my answer helps you

7 0
3 years ago
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