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Mice21 [21]
3 years ago
8

Athlon Company acquired 30 percent of the common stock of Opteron Corporation, at underlying book value. For the same year, Opte

ron reported net income of $55,000, which includes an extraordinary gain of 40,000. It did not pay any dividends during the year. By what amount would Athlon's investment in Opteron Corporation increase for the year, if Athlon used the equity method
Business
1 answer:
MatroZZZ [7]3 years ago
8 0

Answer:

$16,500

Explanation:

The computation of increase in investment is shown below:-

Here, if the investor holds 20% or more but less than 50% shares than the dividend paid and income earned by the investee are reported.

Increase in investment = Shares of net income - Share of dividends

= $55,000 × 30% - $0 (Dividend is not paid)

= $16,500

Therefore for computing the increase in investment under equity method we simply applied the above formula.

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3 years ago
__________ showed that people learn to behave in certain ways because of reinforcement. A. John B. Watson B. B. F. Skinner C. Wi
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3 years ago
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The shape of a production possibility curve is downward-sloping because ____________________. Select the correct answer below: y
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Answer:

you can get more of one good only by giving up some of another good

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8 0
4 years ago
Shoe Box Stores is currently an all-equity firm with 25,000 shares of stock outstanding. Management is considering changing the
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Answer:

d. Sell 210 shares and loan out the proceeds at 8 percent

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7 0
3 years ago
Rockwell Inc. reported the following results for the year ended June 30, 2016:
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Answer:

See attached file

Explanation:

The Retained Earnings Statement is prepared to show changes in the amount  of retained earnings over the accountable period. Retained earnings and Stockholders´ contributions are the main accounts in Stockholders´ Equity.  

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Stock Divided will register as Stockholders´ contributions.  

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3 years ago
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