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andrew-mc [135]
3 years ago
12

Champaign Corporation purchases 45% of the common stock of Rockville, Inc. at a purchase price of $21.6 million cash. During the

year, Rockville reports net income of $2,960,000 and pays $544,000 of cash dividends. At the end of the year, the market value of Champaign’s investment is $23.7 million. What is the year-end balance of the equity investment in Rockville? Select one: A. $22,687,200 B. $25,010,000 C. $24,332,500 D. $21,600,000 E. None of the above
Business
1 answer:
lara [203]3 years ago
5 0

Answer:

The correct option is A,$ 22,687,200

Explanation:

The year end balance of the equity investment of Champaign Corporation at year end is the initial price paid for the investment plus share of net income in the year less Champaign Corporation's share of cash dividends paid in the year as shown below:

Initial cost of investment                           $21,600,000

share of net income($2,960,000*45%)   $ 1,332,000

Less:share of dividends($544,000*45%) ($244,800)

Year end balance of equity investment $ 22,687,200

The correct option is A.

It is important to note that dividends were deducted because it is more ike a cash out from the investment

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Answer:

b) $124

Explanation:

FIFO means first in, first out. Under this principle, goods that were purchased or produced earlier will be the first ones on sale.

The value of the goods sold in our case will be as follows.

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Two items to make   [email protected] $12: 2x12=$24

 

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Bibby Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Bibby
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Answer and Explanation:

The journal entry is shown below:

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(Being overapplied overhead is closed)

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Jamie is single. In 2021, she reported $104,000 of taxable income, including a long-term capital gain of $5,400. What is her gro
Vikentia [17]

For a $104,000 of taxable income, including a long-term capital gain of $5,400, her gross tax liability  is mathematically given as

T=$17479

<h3>What is her gross tax liability?</h3>

Generally, the $95000 will be charged with an ordinary tax rate

Capital gain of $5000  will be charged by 12% rate.

Therefore, Tax on $95000

Tx = 14605.50+ 24%*(95000 - 85526)

Tx= $16879.26

ForCapital gain

Cx= 12%*5000

Cx= $600

In conclusion, her gross tax liability

T= 16879.26 + 600

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A large number of mixed Polish/Halal grocery shops have opened in areas of South London in recent years, catering to an increased number of workers and immigrants from the Middle-East and Eastern Europe.

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Answer:

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