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ruslelena [56]
3 years ago
12

Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2010. Demers reported common stock of $300,000 and retain

ed earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired. Demers earns income and pays dividends as follows: Assume the equity method is applied. 8. Compute Pell's income from Demers for the year ended December 31, 2010. A. $74,400. B. $73,000. C. $42,400. D. $41,000. E. $80,000.
Business
1 answer:
natulia [17]3 years ago
8 0

Answer:

$74,400

Explanation:

Pell Company

Pell's income from Demers for the year ended December 31, 2010

Controlling Interest Share of Net Income for 2010- Excess Fair value Annual Amortization

Controlling Interest Share of Net Income for 2010= ($100,000 × .80) $80,000

Less Excess Fair Value Annual Amortization =($7,000 × .80) $5,600

Pell Income= $74,400

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At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets reveal the following informatio
baherus [9]

Answer:

                               Job 765        Job 766

Direct material         $5,670          $8,900

Direct labor              $3,500          $4,775

Overhead                 $5,400          $8,800

                                (27*200)        (44*200)

Total Job cost          $14,570        $22,475

b) Cost per unit  = Total job cost/unit produced

Job 765 = $14,570/152 units

Job 765 = 95.86

Job 766 = $22,475/250 units

Job 766 = 89.90

8 0
3 years ago
Find the convexity of a seven-year maturity, 6% coupon bond selling at a yield to maturity of 8%. The bond pays its coupons annu
Julli [10]

Answer:

convexity = 37.6306

Explanation:

given data:

maturity time = 7 years

yield to maturity (y) = 8% = 0.08

coupon bond = 6%

price= $89.59 ( gotten from the summation of pv(cf) from the table attached below )

t = time

convexity can be found using this formula

= \frac{1}{p(1+y)^2}  *  summation of (t +t^2) * pv(cf)

= \frac{1}{89.59*(1.08)^2} * 3932.310   = 37.6306

6 0
3 years ago
a whopping 432,000 square feet in size, which of these fields is larger than the other three combined?
kow [346]

The field that is larger than the other three fields combined is the polo field.

On average, one polo field measures 275 meters by 146 meters, which is equal to 40,154 squared meters or approximately 432,000 square feet.

This is a very big area if compared with the areas required to play different sports. Here are some of the areas:

  • Soccer field: The area of a soccer field is approximately 7,140 squared meters or 76854 squared feet.
  • Baseball field:  The area of a baseball field is 14,864 squared meters or 159994 squared feet.
  • Football field: The area of a football field is 5351 squared meters or 57600 squared feet.

Indeed, if you add the three areas (76854 + 159994 + 57600) the total area is 294,448 is still smaller than the area of a polo field.

Note: This question is incomplete because the options are missing; here is the missing part:

  • Soccer field
  • Baseball field
  • Polo field
  • Football field

Learn more about field in: brainly.com/question/4988718

5 0
2 years ago
Torch Industries can issue perpetual preferred stock at a price of $53.50 a share. The stock would pay a constant annual dividen
choli [55]

The company's cost of preferred stock is $0.084 or 8.4%.

<h3>What Are Stocks?</h3>

A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.

cost of preferred stock=\frac{annual dividend }{price of stock}

cost of preferred stock =\frac{ 4.50}{ 53.50}

cost of preferred stock = $0.084

cost of preferred stock = 8.4%

Hence, the company's cost of preferred stock is $0.084 or 8.4%.

To know more about the cost of preferred stock refer to: brainly.com/question/15728637

#SPJ4

3 0
2 years ago
Common stocks are considered to be lower risk than municipal bonds. True False
Damm [24]
That would be True!!!!!
7 0
3 years ago
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