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
Tanya [424]
3 years ago
9

Francis, Inc. acquired 40% of Park's voting stock on January 1, 2020 for $420,000. During 2020, Park earned $120,000 and paid di

vidends of $60,000. During 2021, Park earned $160,000 and paid dividends of $50,000 on April 1 and $40,000 on December 1. On July 1, 2021, Francis sold half of its stock in Park for $275,000 cash.The Equity Investment balance at December 31, 2020 is:a. $420,000b. $444,000c. $408,000d. $492,000
Business
1 answer:
kirill [66]3 years ago
7 0

Answer:

correct answer is b. $444,000

Explanation:

given data

acquired = 40%

voting stock = $420,000

2020 Park earned =  $120,000

2021 Park earned =  $160,000

paid dividends = $50,000

paid dividends = $40,000

sold half of its stock in Park = $275,000

solution

we get here Balance at December 31 2020 that is express as

Balance at December 31  = Acquisition price  +  share in net income-share in dividend   .........................1

put here value we get

Balance at December 31  =  420000 + (120000 × 0.4) - (60000 × 0.4)

Balance at December 31  = 444000

so correct answer is b. $444,000

You might be interested in
Lasch Co. recorded a right-of-use asset of... I. Lasch Co. recorded a right-of-use asset of $200,000 in a 10-year operating leas
svet-max [94.6K]

Answer:

187, 450.00

Explanation:

Cost of the asset : $ 200,000.00

Interest rate at 10 %

Payment per year = 32,550.00

First year total amount due = 10% plus asset cost

= ($200,000x 10/100)= 200,000

=$20,000+200 000

=$220,000.00

After deduction = $220,000- 32, 550

   =$ 187, 450.00

4 0
3 years ago
The interval at which an asset should be replaced to minimize cost (or maximize worth) is known as the: ________
madam [21]

Answer:

c. Optimum replacement interval (ORI)

Explanation:

Optimum replacement interval used to estimate the most cost effective time to replace an asset on the basis of their replacement cost.

There needs to be a balance between the replacement cost and the value that is being lost by changing the asset.

The useful value must be low to justify replacement cost.

For example if the cost of maintaining a machine has increased a lot as a result of wear and tear, it will be more cost effective to make a replacement in order to minimise cost and increase efficiency

3 0
3 years ago
Because risk is associated with the potential for higher profits, businesspersons are motivated to choose organizational forms t
avanturin [10]

Answer:

The correct answer is A. True.

Explanation:

Risk management models are a great tool to anticipate and prevent possible losses that could occur when investing a certain capital, implementing appropriate precautionary measures; Therefore, organizations and investors that have a culture of risk, create a competitive advantage over others, by assuming assessed risks, gain experience in risk management, anticipate adverse changes, protect or cover their investments in advance and obtain higher profits by taking greater risks.

3 0
3 years ago
Assume that GDP per capita for two countries is displayed in plot with a ratio scale on the y-axis and a linear time scale (in y
jenyasd209 [6]

Answer:

The correct answer that fills the gaps are: constant ; increasing.

Explanation:

GDP per capita, income per capita or income per capita is an economic indicator that measures the relationship between the level of income of a country and its population. For this, the Gross Domestic Product (GDP) of said territory is divided by the number of inhabitants.

The use of per capita income as an indicator of wealth or economic stability of a territory makes sense because through its calculation national income is interrelated (through GDP in a specific period) and the inhabitants of this place.

The objective of GDP per capita is to obtain data that somehow shows the level of wealth or well-being of that territory at a given time. It is often used as a measure of comparison between different countries, to show differences in economic conditions.

7 0
3 years ago
Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcyc
Andreyy89

Important dsiclamer: there was a type in the question you enter 26,000 while in the textbook is for 20,000

Answer:

a. Decrease $1,200,000

Explanation:

Income before internal transfer:

revenue 3150

cost        1050

gross     2100

fixed      (2100)

operating     0

external engine purchase (3000)

net (3000)

After internal change:

revenue 1050

cost       (960)

gross profit  90

fixed     (2100)

operating (2010)

internal engine purchase (1,050)

net    (3,060)

difference -3060--3000 = 60

20,000 units x 60 = 1,200,000

8 0
3 years ago
Other questions:
  • Gwen, an independent consultant, traveled to New York City on a business trip. Gwen spent 4 days in business meetings and confer
    5·1 answer
  • Jake Lamps manufactures lamps, lights, shades, and bulbs. Its lighting lasts long and saves power, and it is superior in quality
    8·1 answer
  • Questions regarding financial vs. non-financial benefits of collaboration includeA. whether collaboration pays for itself.B. mak
    6·1 answer
  • Calculate the present value of $4,000 received five years from today if your investments pay (Do not round intermediate calculat
    15·1 answer
  • Lobbyists are able to have influence on the policy-making process aftera law leaves the legislature because
    6·1 answer
  • Annika Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A
    11·2 answers
  • Consider the following cash flow items:
    12·1 answer
  • On December 15, 2016, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2017, of $0.94
    9·1 answer
  • The most common definition that monetary policymakers use for price stability is
    10·1 answer
  • Microeconomics is the study of: __________
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!