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Nataly [62]
3 years ago
13

Parent Company holds 75 percent of Surrogate Company’s voting common shares. On December 31, 20X8, Parent recorded a loss of $20

,000 on the sale of equipment to Surrogate. At the time of the sale, the equipment’s estimated remaining economic life was eight years. Required: a. Will consolidated net income be increased or decreased when consolidation entries associated with the sale of equipment are made at December 31, 20X8? By what amount?
Business
1 answer:
Ne4ueva [31]3 years ago
5 0

Answer:

Net Increase in Net Income will be $18,125

Explanation:

In simple words, when we consolidate accounts we NEVER take account of inter-company transactions which leads to profits OR losses.

So now we will eliminate the effect of the loss recognized by the parent company and the entry would be as under:

Dr Depreciation for the year At Parent percentage XX

Dr Retained Earnings    (Balancing figure)                 XX

Cr Loss from sale of Equipment                                       XX

The debit balance of depreciation at the parent percentage shows that the equipment is still 75% owned by the parent company. Hence the 75% of the per year depreciation must be recognized for the year.

Increase as the loss is added back to Net Income = $20,000

<u>Less</u> Depreciation for the year At Parent percentage = $20,000/8 * 75%

= ($1,875)

Net Increase in Net Income = $20,000 - $1,875 = $18,125

And Double Entry is as under:

Dr Depreciation for the year At Parent percentage $1,875

Dr Retained Earnings   (Balancing Earnings)            $18,125

Cr Loss from sale of Equipment                                          $20,000

The depreciation and the loss will be settle in the Cost of Goods Sold in the consolidated income statement.

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Emily Corporation purchased all of Ace Company's common stock on January 1, 2020, for $1,000,000 cash. The investee's stockholde
Reika [66]

Answer:

$ 1,125,000

Explanation:

Calculation for the amount of Equity Income that Emily will record

First step is to find the Net equity income using this formula

Net equity income= Net income +Dividends

Let plug in the formula

Net equity income=$250,000+$25,000

Net equity income=$225,000

Second step is to find the balance of investment using this formula

Balance of investment= (Common stock + Net equity income )- Amortization of unrecorded patent

Let plug in the formula

Balance of investment =($1,000,000+$225,000 )-($600,000/6)

Balance of investment=$1,225,000-$100,000

Balance of investment = $ 1,125,000

Therefore the amount of Equity Income that Emily will record will be $ 1,125,000

5 0
3 years ago
Which of the following is not correct?
kari74 [83]

The correct answer is option B. Frictional unemployment is the result of worker skills not matching the jobs available. This type of unemployment normally occurs as a result of workers and employers not having enough or the proper information when looking for a new job, or looking for a new employee. Sometimes the worker is not being successful in finding the right company that is looking for someone with skills that the person possesses. Or sometimes is the company that believes that they should not hire someone, waiting to fins a better candidate.

Read more on Brainly.com - brainly.com/question/11481076#readmore

5 0
3 years ago
Compile a job advertisement for a receptionist vacancy
xz_007 [3.2K]

Answer:

<h2>                     RECEPTIONIST NEEDED - FRONT DESK</h2>

 <em>JustJay Limited is looking to hire a young and vibrant young person to join</em>

<em>                       our team as a receptionist for the front desk. </em>

<h2>Responsibilities</h2>
  1. Welcoming clients and prospective clients.
  2. Handling both outgoing ang incoming calls to route them as required.
  3. Handing mail logistics.
  4. Carrying out other Administrative duties as required.

<h2>Qualifications</h2>
  • Age between 21 and 28
  • Computer literate
  • Must possess great Interpersonal skills
  • Must be a team player
  • GED holders are welcome to apply.
  • Experience in similar role would be an added advantage.

                         WE OFFER ATTRACTIVE PACKGAGES.

<em>Send us your CV at </em><em>hrjustjayltd . com</em><em> or contact us on </em><em>1</em><em> </em><em>- 585 - 244 - 8522</em><em>. </em>

3 0
3 years ago
What are the pros and cons of using social media in the workplace? List 3 Each
Dahasolnce [82]

Answer:

pros

Recruit/source potential candidates

Corporate brand awareness/ employer branding

Brand ambassadors and increased engagement

Low cost investment

Ability to reach a wide audience

Targeted marketing

Networking capabilities

Ability to conduct research and focus groups

Training and Development

cons:

Decreased productivity/ lack of focus

Security and privacy concerns

Inappropriate online behavior

Brand reputation risks

Explanation:

4 0
3 years ago
FlybynightSavings is offering a savings account that pays 32% compounded continuously. How much interest would a deposit of $2,0
zhenek [66]

Answer: $47,065.06

Explanation:

When interest is compounded continuously, the formula is:

Future value = Principal * <em>e</em>^(rate * time period)

= 2,000 * <em>e⁰.³² ˣ ¹⁰</em>

= $49,065.06

Amount of interest earned:

= $49,065.06 - 2,000

= $47,065.06

7 0
3 years ago
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