Answer:
Dr. Investments in Associates 250,000
Cr. Cash 500,000
Dr. Cash 10,000
Cr. Investments in Associates 10,000
Dr. Investments in Associates 50,000
Cr. Investment revenue 50,000
Explanation:
The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.
An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.
- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.
- Jolley records the net income from Tige Co. as an increase to its Investment account.
Answer:
$272,000
Explanation:
Accumulated depreciation is the sum of depreciation expense.
Depreciation is a method of expensing the cost of an asset.
Depreciation expense using the straight line depreciation method = (Cost of asset - Salvage value) / useful life
($700,000 - $20,000) / 5 = $136,000
The straight line depreciation method Deprecation allocates the same deprecation expense each year of the useful life of an asset.
The depreciation expense in 2019 and 2020 would be $136,000 x 2 = $272,000
I hope my answer helps you
its not a problem up there i don't see one nor the upload
Answer:
The inspecting costs should be allocated to the Basic model using ABC costing is $30,600
Explanation:
The computation of the inspecting cost is shown below:
= Total number of basic model inspection + the total number of inspection
where,
Total number of basic model inspection equals to
= Number of units produced ÷ every units produced
= 3,400 units ÷ 100
= $34
And, the total number of inspection equals to
= Total inspection cost ÷ number of inspection
= $84,600 ÷ $94
= 900
The number of inspection includes
= total number of basic model inspection + the total number of luxury model inspection
= $34 + $60 (600 units ÷ 10)
Now put these values to the above formula
So, the value would equal to
= 900 × $34
= $30,600
Answer:
c. 42.6%
Explanation:
Average total assets = $410,000+$257,000/2
Average total assets = $667,000
Average total assets = $333,500
Net income = $112,000
Interest expenses = $30,000
Return on total assets = Net income + Interest expenses / Average total assets
Return on total assets = $112,000 + $30,000 / $333,500
Return on total assets = 0.42388060
Return on total assets = 42.39%
