Answer:
Polo will report $318,750 as its investment in Stallion at December 31, 20X8
Explanation:
Common stock = $300,000 acquired at 75%
Net income = $40,000
Pay dividends = $10,000
Increase in value of Patent = $50,000
Economic Life = 10
Amortization = $5,000
Therefore, the $ 5000 would be reduced from the net income.
Investments in Polo = $300,000 + [0.75 × (40000 - 10000 - 5000)]
= $300,000+ 0.75(25,000)
= $300,000+ $18,750
= $318,750
Answer:
C. A risk averse investor would choose the economy in which stock returns are independent because risk can be diversified away in a large portfolio.
Explanation:
if stock prices move together, (positive correlation), the volatility of the portfolio will be higher. Higher volatility means higher risk. This is the case with the first economy.
In the second economy however, the stocks are independent of each other meaning there is zero correlation between stocks and hence the portfolio volatility will be much lesser.
As a risk-averse investor you will prefer the portfolio with lower volatility for the same expected return.
<span>Because the statute penalizes the person committing the crime as well as the employer whose employee committed the crime, Chris can be held liable, and the company that we works for (Watkins) can be held vicariously liable under the statute.</span>
Shareholders' equity is equal to net fixed assets minus long-term debt plus net working capital.
Shareholders' equity refers to the amount owners of a company have invested in the said company:
- Shareholders' equity includes the money they've directly invested and the accumulation of income that has been accrued in the name of the company as earned since the start of the investment and reinvestment.
- It refers to the ownership of assets that may have liabilities or debts connected to them.
- Shareholder's equity is equal to the net fixed assets of the company subtracted from the long-term debt and added to the net working capital.
- Another way to ascertain shareholders' equity is by subtracting total assets from total liabilities.
Therefore, shareholders' equity is equal to net fixed assets minus long-term debt plus net working capital.
Learn more about shareholders' equity here: brainly.com/question/14032844
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The correct answer would be A
