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Snezhnost [94]
3 years ago
7

Assume that Horicon Corp acquired 25% of the common stock of Sheboygan Corp. on January 1 for $300,000. During the year Sheboyga

n Corp. reported net income of $160,000 and paid total dividends of $60,000. If Horicon uses the equity method to account for its investment, the balance in the investment account on December 31 will be ____
Business
1 answer:
ella [17]3 years ago
8 0

Answer:

The balance in the investment account on December 31 will be $325,000

Explanation:

The equity method is computed by applying an equation which is shown below:

= Opening balance of common stock + rate of common stock × (Net income - dividend paid)

= $300,000 + 25% × ($160,000 - $60,000)

= $300,000 + 25% × $100,000

= $300,000 + $25,000

= $325,000

Since, only 25% of common stock is acquired so, only 25% is to be considered in the computation part. And all other balances are also considered together.

Hence, the balance in the investment account on December 31 will be $325,000

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Grum Corp., a publicly owned corporation, is subject to the requirements for segment reporting.
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Answer:

Option (d) $5,000,000

Explanation:

Data provided in the question:

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7 0
3 years ago
Glinda goes to the supermarket for her monthly grocery shopping. As she waits in the line at the cash register, she sees her fav
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Answer:

<em><u>Convenience products.</u></em>

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Some of its features are:

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As a result of cash flow shortages, Washington Department Stores has fallen behind in payments to suppliers. Some suppliers are
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Answer:

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