Answer:
The value that Perfection records in it's books on Jan 2, 2021 related to its investment in Satisfactory is:
$486,000.
Explanation:
a) Data and Calculations:
Net asset value of Satisfactory = $1,944,000 on acquisition date
Stake purchased by Perfection = 25%
25% of the net asset value of Satisfactory = $486,000 ($1,944,000 * 25%)
b) There is no goodwill arising from the investment in Satisfactory. The equity method will be used to account for the investment in the Satisfactory. The Equity Method involves recording the investment in an associated company like Satisfactory when Perfection's ownership interest in Satisfactory is valued at 20–50% of the net assets.
55 x 10^9 hope this helped :D
Answer:
d. economies of scale
Explanation:
Based on the information provided within the question it can be said that this concept is known as an economy of scale. Like mentioned in the question this concept states that as a company scales their operation, the cost of each input unit decreases as their output or production increases, Thus granting the company a cost advantage. As is happening in this scenario.
The kind of policy is needed Level term.
With limited payment life insurance, the policyholder refrains from extending the policy to ultimately pay the premium. Instead, you pay the full cost of the policy over time. Term life insurance, also known as pure life insurance, is a type of death benefit that is paid to the policyholder's heirs over a specified period of time.
Life provides whole-life protection at a premium for 30 years. The advantage of this policy is that premiums can be carried forward for 30 years, making life insurance cheaper compared to other limited payment options. Single premium life insurance allows policyholders to make a lump sum payment instead of monthly, quarterly, or yearly payments.
Learn more about Life insurance here:-brainly.com/question/25954612
#SPJ4
