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
LekaFEV [45]
2 years ago
7

Wally Corporation acquired 70 percent of the common shares and 60 percent of the preferred shares of Safety Corporation at under

lying book value on January 1, 20X6. At that date, the fair value of the noncontrolling interest in Safety's common stock was equal to 30 percent of the book value of its common stock. Safety's balance sheet at the time of acquisition contained the following balances: Assets $700,000 Liabilities $110,000 Preferred Stock 100,000 Common Stock 200,000 Retained Earnings 290,000 Total Assets $700,000 Total Liabilities and Equities $700,000 The preferred shares are cumulative and have an 8 percent annual dividend rate and are three years in arrears on January 1, 20X6. All of the $10 par value preferred shares are callable at $12 per share. During 20X6, Safety reported net income of $80,000 and paid no dividends. Based on the preceding information, what is Safety's contribution to consolidated net income for 20X6?
Business
1 answer:
Alika [10]2 years ago
3 0

Answer:

$80,000

Explanation:

The entire amount of net income of $80,000 Safety by First for the year 2006 will be considered as a part of the consolidated income and will get distributed between controlling and non-controlling interest in the relevant proportion.

You might be interested in
4. The E. Harris Company issued bonds in September of 2003. When issued, the bonds had 20 years to maturity, a coupon rate of 7.
stiv31 [10]

Answer:

6%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity. It is the long term return of the bond which is expressed in annual term.

Face value = F = $1,000

Coupon payment = $1,000 x 7.5% = $75

Selling price = P = $1110.40

Number of payment = n = 10 years

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $75 + ( $1,000 - $1,110.4 ) / 10 ] / [ ( $1,000 + $1,110.4 ) / 2 ]

Yield to maturity = [ $75 - 11.04 ] / $1,055.2

Yield to maturity = $63.96 / $1,055.2

Yield to maturity = 0.0606 = 6.06%

Rounded off to whole percentage 6%

3 0
3 years ago
Products are winnowed out as they make their way down the path from conception to consumption, a process called ________.
Brilliant_brown [7]

Answer: cultural selection

Explanation:

Products are winnowed out as they make their way down the path from conception to consumption, a process called cultural selection.

Cultural selection theory is a theory about how certain things spread in the society, such as an art, a religious ritual etc. Due to innovation and other criteria, products will be winnowed out.

8 0
3 years ago
After WWII, which synthetic fabric began appearing in casual clothing?
inessss [21]

linen was a synthetic fabric


3 0
3 years ago
Read 2 more answers
Your friend says to you, "America is one of the fairest countries in the world because we have a democracy, and we are able to v
professor190 [17]

Answer and explanation:

Democracy is the state in which individuals of a community make decisions collectively being the interest of most people prioritized. A pure form of democracy is difficult to find even in countries that highly promote equal rights such as the United States.

The Democracy Index is a composite that measures democracies in 167 countries scoring them from 1 to 10 (10 is the highest grade). In 2019, The U.S. was positioned in the 25th place in the list of most democratic countries. <em>Norway </em>is placed in the first place followed by <em>Iceland</em>.

In such a case, <em>we should recommend our friend to take a look at the Democracy Index where he or she will find out that the U.S. is not one of the fairest nations in the world. Its government functioning and political participation are aspects where the U.S. needs improvement.</em>

6 0
3 years ago
Blythe Corp. is a defendant in a lawsuit. Blythe's attorneys believe it is reasonably possible that the suit will require Blythe
8090 [49]

Answer:

The entry is not required because the outcome is reasonably possible, not certain or probable. So IAS 37 says that the liability must not be recognized as the outcome is not reasonably certain or probable.

Explanation:

The liability must be included in the financial statement only if the outcome is certain or probable. In this scenario, the outcome is reasonably possible but neither certain nor probable in this situation. So the entry in the financial statement is not required. If the liability is of a huge amount then IAS 37 says that their must be a disclosure in the financial statement notes about the lawsuit.

7 0
3 years ago
Read 2 more answers
Other questions:
  • Jacques has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontransferable ticket. Now Kyoko, w
    5·1 answer
  • When building a new mall what would the input be?
    13·1 answer
  • Frank is an employee of Guitar Makers, LLC. Guitar's employee manual states that workers, such as Frank, will be dismissed only
    10·1 answer
  • Type the correct answer in the box. Spell all words correctly.
    15·1 answer
  • Red Eye Shipping Inc. has purchased a business intelligence system. The main advantage of such a system is that it eliminates th
    13·1 answer
  • 1) Suppose you wish to retire 35 years from today. You determined that you will need $250,000 per year after you retire, with th
    11·1 answer
  • Geraldo is a customer care executive at a telecommunications service provider. He receives a complaint from a customer about an
    15·1 answer
  • What body of people do not have to worry about raising capital?
    11·1 answer
  • Increase the selling price
    6·1 answer
  • Profit maximization fails to provide an appropriate goal for financial managers because.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!