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Juli2301 [7.4K]
3 years ago
5

Fizzy Cola acquired 45% of the voting stock of National Bottlers on January 1, 2017, at a cost of $55,000,000, an amount equal t

o 45% of National's book value. Fizzy reports its investment using the equity method. In 2017, National reported net income of $9,000,000 and declared and paid dividends of $4,000,000. National sells product to Fizzy at a markup of 25% on cost. Fizzy had $6,000,000 of product purchased from National in its ending inventory, measured at cost to Fizzy. What is Fizzy's Investment in National balance reported on its December 31, 2017 balance sheet
Business
1 answer:
Ket [755]3 years ago
6 0

Answer: $54,510,000‬

Explanation:

The Investment at year end 2017 is;

<em>= Opening Investment + Portion of Net Income - Unconfirmed profit on ending inventory - Dividends</em>

Portion of Net Income

= 45% * 9,000,000

= $4,050,000

Unconfirmed profit on ending inventory

= (6,000,000 - ( 6,000,000/125%)) * 45%

=  $540,000

Investment account at end of year = 55,000,000 + 4,050,000 - 540,000 - 4,000,000

= $54,510,000‬

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(A) Technical skills

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Z is a normal good. The equilibrium price and equilibrium quantity of Z in the year 2011 was $25 and 60 units, respectively. In
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D) Shift of the demand curve for Z to the left

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A rightward shift of the demand curve should increase both the equilibrium price and quantity.

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3 years ago
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Failure to timely pay personal income taxes.

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2 years ago
Which of the following best describes a project stakeholder
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2 years ago
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Both parties experience surplus, but there is inequity because Steve has a much larger producer surplus

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I hope my answer helps you

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3 years ago
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