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konstantin123 [22]
3 years ago
14

Johnson Inc. purchases 21% of the voting stock of XYZ Company. This is sufficient to give Johnson significant influence over XYZ

. If Johnson elects to apply fair-value accounting to this investment, then any dividends XYZ pays to Johnson will be _________ treated as an addition to the Investment in XYZ account treated as a reduction to Goodwill treated as dividend income to Johnson treated as a reduction to the Investment in XYZ acc
Business
1 answer:
lutik1710 [3]3 years ago
4 0

Answer:

dividend income to Johnson treated as a reduction to the Investment in XYZ acc

Explanation:

It will debit cash by the amount to be received and credit his investment by the same value. The reasoning is that Johnson decides to distribute the dividends as it has significant influence over XYZ. Thus, it is not earnings. It is just moving cash from one place to another.

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Your broker charges a commission of 5.1% of the cost of the stock you so if you sell a batch of stock worth 2,617,75 how much co
dmitriy555 [2]

Answer:

a. $133.51

Explanation:

Selling the stock for a relative amount of money would result in a total price of

$133.51.

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2 years ago
In addition to compensation, customers expect _____. in other words, they expect fairness in terms of policies, rules and timeli
konstantin123 [22]
The answer to this question is "OUTCOME FAIRNESS". Such as in addition to compensation, the customers expect OUTCOME FAIRNESS. In other words, the customers expect fairness in terms of policies, rules, guidelines, and timeless of the complaint process. Therefore, the answer is the last item in the choices which is outcome fairness.
4 0
2 years ago
Knowledge Check 01 On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exer
Westkost [7]

Answer:

$153,333

Explanation:

Calculation to determine What amount should Olympic recognize as compensation expense for 2016

Using this formula

Compensation expense =Total compensation/Vesting period

Let plug in the formula

Compensation expense=($5 x 92,000)/3 years

Compensation expense=$460,000/3 years

Compensation expense=$153,333

Therefore What amount should Olympic recognize as compensation expense for 2016 is $153,333

5 0
2 years ago
Describe the benefits of branding? ​
Kobotan [32]

Answer:

u get free stuff out of it

3 0
3 years ago
In 2021, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 20
alekssr [168]

Answer:

Entry to record adjustment:

COGS Dr $9.4m

         Inventory Cr $9.4m

Explanation:

The question relates to a change in accounting policy. According to IAS 8 (changes in accounting policy and estimate), a change in accounting policy is to be reflected retrospectively and prospectively, which means any changes should be implemented by bringing changes in the past records. Since CPS company has been using FIFO method, the inventory has been overstated in the financial statements. A shift to AVCO has resulted in a decrease in inventory value.

The value of inventory has to be reduced as a result of change in accounting policy (i.e $38m - $28.6m). This is the closing inventory so a reduction in the value of closing inventory results in an increase in cost of goods sold (COGS), therefore, the adjusting entry will be aimed at reducing inventory and increasing cost of goods sold, see as follows:

Entry:

COGS Dr $9.4m

         Inventory Cr $9.4m

8 0
2 years ago
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