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
nexus9112 [7]
4 years ago
15

Suppose that on January 6, 2018, Excel Motors paid $240,000,000 for its 45% investment in Dynamic Motors. Excel has significant

influence over Dynamic after the purchase. Assume Dynamic earned net income of $10,000,000 and paid cash dividends of $15,000,000 to all outstanding stockholders during 2018. (Assume all outstanding stock is voting stock.) Read the requirements Requirement 1. What method should Excel Motors use to account for the investment in Dynamic Motors? Give your reasoning. Excel Motors should use the ▼ method to account for its investment in Dynamic Motors because the investment Requirement 2. Journalize all required 2018 transactions related to Excel Motors's Dynamic investment.

Business
1 answer:
goldenfox [79]4 years ago
3 0

Answer:

Requirement 1 :

Excel Motors should use the Equity method to account for its investment in Dynamic Motors, because the investment results in significant influence over the invested company.

Requirement 2 :

In the books of Excel Motors:

[ Kindly find the attachment ]

You might be interested in
Which of these options for saving money typically offers the most liquidity?
erica [24]
The option for saving money which typically offers the most liquidity is D. a basic savings account.
Liquidity refers to the fact that you can withdraw your money anytime you want. 
4 0
3 years ago
Which of the following is NOT a form of protectable intellectual property (IP)? Select one: a. Registered trademark b. Copyright
garri49 [273]

Answer:

The answer is d. All of the above are forms of protectable IP

Explanation:

Intellectual Property Protection is protection for inventions, literary and artistic works, symbols, names, and images created by the mind.One can protect their intellectual property by using Patents, Trademarks, Trade Secrets, and Copyrights.

5 0
3 years ago
Over time, the average consumer will be better off from reduced trade barriers by ________.
AVprozaik [17]

Answer:

a. greater variety and lower prices

Explanation:

Due to the comparative advantages, countries can produce the product that they have proficiency. For example, if there are 2 countries, A and B. A have a  skill of producing tasty wine, they can produce better quality of wine than B with the lower cost. When the trade barriers are reduced, the wine from A will be sold in B, the customer will have more choices of wine in the market and the price will relatively less different comparing to the price when the high barriers exist.

6 0
3 years ago
Consumer protection laws might result in
Jet001 [13]
Neither A nor B. Hope it helps!
4 0
3 years ago
Read 2 more answers
Assume that both portfolios A andB are well diversified, that E(rA) =12%, and E(rB) =9%.Assume the economy has only one risk fac
nata0808 [166]

Answer:

The risk free rate (Rf) is 28,2%

Explanation:

We will substituting the portfolio expected return (Er) and the betas of the portfolio in the expected return & beta relationship, that is:

E[r] = Rf + Beta * (Risk Premium)

On doing this we get 2 equations in which the risk free rate (Rf) and the risk premium [P] are not known to use:

12% = Rf + 1 * (P - Rf)

9% = Rf + 1.2 * (P - Rf)

On solving first equation (of Portfolio A) for P(risk premium), we get:

12% = Rf + 1 * (P - Rf)

12% = Rf + P - Rf

(Rf and Rf cancels each other)

P = 12%

Now, on using the value of P in second equation (of Portfolio B), and solving for Rf (risk free rate), we get:

9% = Rf + 1.2 * (12.2% - Rf)

9% = Rf + 14.64% -1.2Rf

1.2Rf - Rf = 14.64% - 9%

0.2Rf = 5,64%

Rf = 5.64% / 0.2

Rf = 28,2%

So, the risk free rate (Rf) is 28,2%

6 0
3 years ago
Other questions:
  • The cost components of an air conditioner include $35 for the compressor, $11.50 for the sheet-molded compound frame, and $80 pe
    10·1 answer
  • Suppose that $1450 is deposited into an account paying simple interest of 8% annually. At the end of seven (7) years, the accoun
    6·1 answer
  • In 2015, a former Google engineer, Erica Baker, made a spreadsheetshowing pay disparities at the company. She shared the informa
    14·1 answer
  • Kline Corp. recognizes revenue over time to account for long-term contracts. The contract price is $5 million, total constructio
    9·1 answer
  • Which security method involves coding your readable emails into a format that is illegible
    6·1 answer
  • During the current year, Orr Company incurred the following costs: Research and development services performed by Key Corp. for
    13·1 answer
  • Electrical engineers install electrical wiring. True or False?
    14·1 answer
  • IRR in Excel!(CHAPTER 9) Your company is considering a new project opportunity. It would immediately receive $200. In return, in
    6·1 answer
  • Armstrong is a well-known producer and seller of rose bushes. The company's marketing manager is interested in knowing what gard
    13·1 answer
  • What would you like to be when you grow up?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!