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djverab [1.8K]
4 years ago
11

National Financial​ Services, Inc. invested $ 24,000 to acquire 5,000 shares of Stonebridge​ Investments, Inc. on March​ 15, 201

5. This investment represents less than 20​% of the​ investee's voting stock. On May​ 7, 2018, National Financial​ Services, Inc. sells 2,000 shares for $ 13,250. When the journal entry to record the sale is​ made, ________.
A. Gain on Disposal will be creditedB. Loss on Disposal will be debitedC. Equity Investments will be debitedD. Cash will be credited
Business
1 answer:
Savatey [412]4 years ago
5 0

Answer:

A. Gain on Disposal will be credited

Explanation:

In this question we have to compare the purchase price and sale price per share which is shown below:

The Purchase price per share would be

= Total amount invested ÷ number of shares acquired

= $24,000 ÷ 5,000 shares

= $4.8 per share

And, the sale price per share would be

= Total amount ÷ number of shares sold

= $13,250 ÷ 2,000 shares

= $6.625 per share

Since the sale price per share is higher than the purchase price per share which reflects the gain.

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Materials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers at
sammy [17]

Answer:

Increase in income from Operations = $72,000

Explanation:

Current cost of purchasing the inventory = $5 per unit.

Purchase price if bought from Division 6 = $3.20

Net benefit on each unit = $5 - $3.20 = $1.80

Number of units purchased = 40,000

Net savings in Expense of purchase of raw material, which will result in increase in income from operation's by = 40,000 \times $1.80

= $72,000.00

4 0
4 years ago
Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry's again
weeeeeb [17]

Answer:

B) increased nominal GDP from last year, but real GDP was unaffected.

Explanation:

Nominal GDP includes the total production of final and legal goods and services at current prices.

So Harry's Pizzas will increase the nominal GDP ($120,000 ˃ $100,000) but since we do not know the inflation rate, we can not determine how the real GDP was affected.

8 0
4 years ago
The cost of workers who assist in or supervise the manufacturing process, not linked to specific units of product is called:
FinnZ [79.3K]

Answer:

Indirect labour cost is the cost of workers who assist in or supervise the   manufacturing process not linked to specific units of product.      

The correct answer is C                                          

Explanation:

Indirect labour cost is the cost of labour that is not directly traceable to a cost unit or cost center such as factory supervision cost.            

3 0
3 years ago
property has Gross Scheduled Income of $100,000. The vacancy rate and credit rate allowance is 3% whereas Operating expenses are
Ugo [173]

Answer:

The answer is "10.5\%"

Explanation:

Following are the Cap rate:

 = \frac{(Income \times (1 - vacancy\  rate) - operating \ expense)}{\text{purchase price of property}}

= \frac{(\$ 100,000 \times 0.97 - \$ 34,000)}{\$ 600,000}\\\\= \frac{\$ 63,000}{ \$ 600,000}\\\\= 10.5\%

8 0
3 years ago
The Alpine Shop is a store that specializes in selling equipment for camping and other outdoor activities. The store has many em
Ipatiy [6.2K]

Answer:

d) information utility

Explanation:

Based on the information provided within the question it can be said that the type of utility created by the efforts of the employees is information utility. This refers to individuals moving information about the good and bad features that the company sells in order to provide utility to the store and hopefully garner more customers to increase sales.

7 0
4 years ago
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