1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nasty-shy [4]
4 years ago
12

Barnes Corporation purchased 75 percent of Nobles’ common stock for $262,500, which was acquired at book value. The fair value

of the noncontrolling interest at the date of acquisition was equal to their proportionate share of the book value of Nobles. During the year, Nobles reports net income of $40,000, while Barnes reports earnings of $200,000 from its own operations. Barnes pays dividends during the year of $50,000, and Nobles pays dividends of $10,000. On January 1, Barnes has a retained earnings balance of $500,000 while Nobles has retained earnings of $300,000. Barnes accounts for its investment in Nobles using the equity method. What is the total differential, assuming Barnes paid fair value of $300,000 for 75 percent ownership of Nobles while Nobles’ book value was $350,000?
Business
1 answer:
Wittaler [7]4 years ago
3 0

Solution:

Barnes Corporation purchased 75 percent of Nobles’ common stock

During the year, Nobles reports net income of $40,000.

Hence, 75% of net income of Nobbles is attributable to Barnes Corporation.

Barnes reports for income from subsidiary prior to consolidation

                                                          = 40,000 x 75%

                                                           = $30,000

You might be interested in
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods
adell [148]

Answer:

Direct material price variance= $12,500 unfavorable

Explanation:

Giving the following formula:

The standard price per pound is $2.00.

The actual quantity of materials purchased and used in production is 50,000 pounds.

The actual purchase price per pound of materials was $2.25.

<u>To calculate the direct material price (spending) variance, we need to use the following formula:</u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2 - 2.25)*50,000

Direct material price variance= $12,500 unfavorable

6 0
3 years ago
14. in 2018, cities including seattle and san francisco passed laws banning the use of plastic disposable straws because they ar
mr Goodwill [35]

In the above situation, the potential costs that may be derived will be,

  1. Straws made of alternative materials lack the flexibility of plastic straws. This makes it harder for people with disabilities, seniors, and children to use them.
  2. Compostable straws are an alternative to disposable straws. For compostable straws to break down properly they need to be disposed of in a special commercial composter, an infrastructure that needs to be created.
  3. Alternatives to disposable straws do not need fossil fuels to be recycled.

Therefore, the options B, C and D hold true.

<h3>What is the significance of potential costs?</h3>

The potential costs can be referred to or considered as the costs that may have a contingency of being incurred by a producer upon the effects of some external factors.

Therefore, the options B, C and D holds true and states regarding the significance of potential costs.

Learn more about potential costs here:

brainly.com/question/10963256

#SPJ4

The question seems to be incomplete. It has been added below for better reference.

14. In 2018, cities including Seattle and San Francisco passed laws banning the use of plastic disposable straws because they are harmful to the environment (because plastic does not easily biodegrade) and to marine life (which ingest straws that end up in the ocean). Opponents point out that such bans may result in unintended monetary cost as well as external cost.

Which of the following describes potential costs that may arise as a result of these new laws? Select all that apply.

A. Alternatives to plastic straws cost at least 10 times more than the current price of plastic straws.

b. Straws made of alternative materials lack the flexibility of plastic straws. This makes it harder for people with disabilities, seniors, and children to use them.

C. Compostable straws are an alternative to disposable straws. For compostable straws to break down properly they need to be disposed of in a special commercial composter, an infrastructure that needs to be created.

D. Alternatives to disposable straws do not need fossil fuels to be recycled.

4 0
2 years ago
) suppose that currency in circulation is $600 billion, the amount of checkable deposits is $900 billion, and excess reserves ar
Inessa05 [86]
Money supply = Currency in circulation + Checkable deposits.=600 + 900 = 1500 Billion

Current deposit ratio = Currency in Circulation/ Checkable deposits. = 600/900 = .667

Excessive reserve ratio = Excess Reserves/Checkable deposits.= 15/900 = .0167

Money multiplier = (1 + C)/(rr + ER + C)= (1 + .667)/ (.0278 + .0167 + .667) = 2.343
4 0
3 years ago
Read 2 more answers
_____political activities include
anastassius [24]
I think the answer is c for this question tbh well yah
6 0
3 years ago
As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets o
fgiga [73]

Answer:

See below

Explanation:

a. Earnings per share

= After tax earnings / Number of common shares outstanding

= $3,000,000 / 761,000

= $3.9 per share

b. Assuming that a share of Bozo Oil's company has a market value of $40, then, the firm's price earning ratio would be:

= Common stock market value / Earnings per share

= $40 / $3.9

= 10.26

c. The book value of a share of Bozo Oil's common stock

Book value = (Assets - Liabilities) / Number of shares outstanding

= ($15,000,000 - $9,000,000) / 761,000

= $6,000,000 / 751,000

= $7.88

7 0
3 years ago
Other questions:
  • The U.S. fiduciary monetary system: a. is one where money is not convertible to a valuable commodity such as gold. b. is the one
    7·1 answer
  • On april 1, griffith publishing company received $1,548 from santa fe, inc. for 36-month subscriptions to several different maga
    9·2 answers
  • How did industrialization encourage the growth of public education
    5·2 answers
  • The statement of retained earnings or the statement of stockholders' equity reconciles the net income, dividends paid, and the c
    14·1 answer
  • The additional benefit of producing one more roast beef sandwich at a local deli is $2. The additional cost of producing one mor
    15·1 answer
  • Which of the following statements is true? a.The cost of goods sold budget is prepared before the direct labor and overhead budg
    10·1 answer
  • Match the following definitons with appropriate options given in below:
    5·1 answer
  • If a company uses straight-line depreciation, the annual average investment can be calculated as: (Check all that apply.)
    8·1 answer
  • Which of the following is a service business?
    7·2 answers
  • Those who lie to others can begin to perceive the recipients of the lies as less honest and trustworthy. This phenomenon is term
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!