Answer:
The correct answer is letter "A": The convenience yield is always positive or zero.
Explanation:
The convenience yield reflects the premium of possessing an asset instead of one of its derivates or contracts. This situation arises in front of inverted markets, where holding the asset itself may bring more profits than purchasing a derivate of the same asset.
<em>The convenience yield tends to be positive or zero because the prices of assets cannot fall below zero. In other words, they are not negative.</em>
Answer:
increase productivity in office setting
Savannah Corporation should report revenue from investment for 2017 in the amount of $80,000.
<h3>Amount to be reported as revenue</h3>
First step
Percentage ownership=35,000/140,000 shares ×100
Percentage ownership=25%.
Second step
Using equity method
Revenue from investment=25%× $320,000
Revenue from investment=$80,000
Therefore Savannah Corporation should report revenue from investment for 2017 in the amount of $80,000.
Learn more about revenue here:brainly.com/question/24280609
#SPJ4
Answer:
3 years
Explanation:
Since the income tax is ignored, so the operating cash flows would be
= EBIT + Depreciation - Income tax expense
= $105,000 + $45,000 - $0
= $150,000
The operating cash flows are same for ten years
And, the initial investment is $450,000
So, the payback period would be
= Initial investment ÷ Net cash flows
= $450,000 ÷ $150,000
= 3 years
Answer:
$284,000
Explanation:
ABC Corporation
Consolidate Income Statement
For the year ended, 31 December, 20XX
Particulars ABC XYZ
Sales $500,000 320,000
Less: Expenses <u>$(280,000) $(240,000)</u>
Net Income $220,000 $80,000
Consolidated Income for the year under the proprietary theory approach for ABC corporation = $220,000 + (80,000 × 80%) = $220,000 + 64,000
= $284,000
According to the proprietary theory approach, the wholly-owned company will get the same percentage it owns the proportionate of that subsidiary company or companies.
