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emmasim [6.3K]
3 years ago
10

Bauerly Co. owned 70% of the voting common stock of Devin Co. During 2012, Devin made frequent sales of inventory to Bauerly. Th

ere were unrealized gains of $40,000 in the beginning inventory and $25,000 of unrealized gains at the end of the year. Devin reported net income of $137,000 for 2012. Bauerly decided to use the equity method to account for the investment. What is the non-controlling interest's share of Devin's net income for 2012
Business
1 answer:
kolezko [41]3 years ago
7 0

Answer:

                                                                         $                            $

Net Income (137000*30%) (a)                                             41,100

Add:  

Unrealized gains in the beginning inventory 40,000  

Unrealized gains at the end of the year         25,000  

Difference                                                         15,000  

(NCI in Unrealized gain (15,000*30%) (b)                             4,500

Non-controlling interest's share of Devin's net income for 2012 ($41,100+$4,500)                                                                    45,600

Non-controlling interest's share of Devin's net income for 2012= $45,600

Explanation:

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Y_Kistochka [10]
Hi there.

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3 0
3 years ago
Read 2 more answers
Your store has average sales of $1,680 per day. Its shrinkage rate is 3%. What will its losses be for an entire year?
Lerok [7]

Answer:

$18,396

Explanation:

Average sales of the store per day = $1,680

Number of days in a year = 365

Total sales in a year = $1,680  x 365 = $6132,200

Shrinkage rate = 3%

Losses for an entire year = 0.03 x $6132,200 = $18,396

6 0
2 years ago
both capital and labor​ double, given the production​ function, output will double . If output doubles when inputs​ double, the
Sergeu [11.5K]

Answer:

If output doubles when inputs​ double, the production function will be characterized by​ a <u>constant returns to scale</u>.

Explanation:

In economics, returns to scale refers to a long run situation that reveals to the proportionate change in output when capital and labor inputs become variable or change.

The three possible types of returns to scale are as follows:

1. Increasing returns to scale: This occurs when the proportionate change in output is greater than the proportionate change in capital and labor inputs.

2. Decreasing returns to scale: This occurs when the proportionate change in output is less than the proportionate change in capital and labor inputs.

3. Constant returns to scale: This occurs when the proportionate change in output is the same as the proportionate change in capital and labor inputs.

Based on the above explanation therefore, if output doubles when inputs​ double, the production function will be characterized by​ a <u>constant returns to scale</u>. This is because the the proportionate change (double) in output is the sames as the proportionate change (double) in inputs.

3 0
3 years ago
The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that had cost $15,000 w
finlep [7]

Answer: See explanation

Explanation:

a. Sales = $27000

Less: sales returned = -$660

Less: discount at 2% = ($27000 - $660) × 2% = -$526.8

Net sales = $25813.2

b. Net sales = $25813.2

Less: cost of goods sold = $15000 - $400 = -$14600

Gross profit = $11213.2

Operating expense:

Less: Selling and administrative expenses = -$2835

Operating income = $8378.2

Non-operating items:

Less: Interest expense = ($200

Add: Gain on land Sales = $900

Net Income= $9078.2

c. The interest expense be shown on the statement of cash flows in the operating expenses section. It'll be recorded in the operating activities.

d. The sale of the land would be under the investing activity as it's capital asset of the business. Therefore, the full sales price of the land, $9,250, would be shown as a cash inflow from investing activities on the statement of cash flows.

Option B is the correct answer.

4 0
3 years ago
Allegience Insurance Company’s management is considering an advertising program that would require an initial expenditure of $16
nalin [4]

Answer:

a. Pay back period is 4 years and 18 days

b. Net present value is - $5,909. Since the NPV is negative, the project should be rejected.

Explanation:

Note: See the attached for the calculation tables of a and b.

a. Pay back period = 4 years and [($2,565/$51,244)*365 days] = 4 years and 18 days approximately.

Download xlsx
3 0
3 years ago
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