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Hunter-Best [27]
3 years ago
11

Hawkins Company has owned 10 percent of Larker, Inc., for the past several years. This ownership did not allow Hawkins to have s

ignificant influence over Larker. Recently, Hawkins acquired an additional 30 percent of Larker and now will use the equity method. How will the investor report change?
Business
1 answer:
Darya [45]3 years ago
7 0

Answer:

There will be no recorded change because the equity method comes into play from the acquisition date

Explanation:

In the event that Hawkins Company purchases or acquires another 30 percent of Larker, Inc. to add to their initial 10 percent holding, there will be no change in the investor report. This is because using the equity method, any investor report only starts taking into effect from the day the acquisition was made. Older statements and reports are not tampered with, as the investor did not have up to 40% of the company at that point  in time.

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True/False
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Answer:

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Explanation:

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3 0
3 years ago
In what ways might monetary policy be superior to fiscal policy?
a_sh-v [17]

Monetary policy does not require congressional approval, it is more flexible than fiscal policy. Conversely, monetary policy has a propensity to increase inflation more than fiscal policy.

A country's central bank uses a set of instruments called monetary policy to regulate the total amount of money in circulation, foster economic expansion, and implement measures like adjusting interest rates and altering bank reserve requirements.

The Federal Reserve Bank of the United States carries out a monetary policy under a twin mandate to maximise employment while containing inflation.

A nation's overall money supply is managed by monetary policy, which also aims to promote economic growth.

Interest rate changes and adjustments to bank reserve requirements are examples of monetary policy strategies.

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