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Lelu [443]
2 years ago
8

Madison Corporation purchased 45% of Jay Corporation for $120,000 on January 1. On June 20 of the same year, Jay Corporation dec

lared total cash dividends of $30,000. At year-end, Jay Corporation reported net income of $150,000. The balance in Madison's Equity Method Investments—Jay Corporation account as of December 31 should be:
Business
1 answer:
Romashka-Z-Leto [24]2 years ago
4 0

Answer:

The correct answer is $175,500.

Explanation:

According to the scenario, the given data are as follows:

Investment value = $120,000

Acquisition Dividend = $30,000 × 45% = $12,000

Net income share = $150,000 × 45% = $67,500

So, we can calculate the balance amount by using following formula:

Balance amount = Investment value  - Acquisition Dividend + Net income share

= $120,000 - $12,000 + $67,500

= $175,500

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Ksju [112]

Answer:

b. Dividends and a credit to Dividends Payable for $824,000

Explanation:

Dividends payable = 2,060,000 shares * $0.40 per share = $824,000

Journal entry on February 16

Dividends                 $824,000

Dividends payable                     $824,000

4 0
2 years ago
What is the cost when someone borrows money from someone else?.
PSYCHO15rus [73]

The cost when someone borrows money from someone else is known as interest.

<h3>What is interest?</h3>

Interest rate is the cost of borrowing. It is the amount the borrower pays the lender for use of their funds. It is usually a function of the amount borrowed, length of the loan and the interest rate.

For example, if a person borrows $1000 for 1 year at an interest rate of 10, the interest that would be paid is: $1000 x 0.1 = $100.

To learn more about interest rate, please check: brainly.com/question/14935026

8 0
2 years ago
what type of interest rate is set and will not be changed unless you go over the limit or fail to make a payment​
ICE Princess25 [194]

Answer:

Simple interest is paid only one time and does not change.

Explanation:

Hope this helped you!

5 0
3 years ago
Interest rates are expressed as a percentage of ?
Mashcka [7]

Answer:

The interest rate is the amount a lender charges a borrower and is a percentage of the principal—the amount loaned. The interest rate on a loan is typically noted on an annual basis known as the annual percentage rate (APR).

Explanation:

<em>hope this helps</em>

8 0
2 years ago
If there is a great demand for a product, the production for that product will
sweet [91]

production for that product will increase.

4 0
3 years ago
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