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kupik [55]
3 years ago
11

On January 2, 2020, Warner Co. purchased 40% of Kyle Co.’s outstanding common stock. The carrying amount of Kyle's depreciable a

ssets was $1,000,000 on January 2. Kyle's depreciable assets had an original useful life of 10 years and a remaining useful life of 5 years. Warner recognized $60,000 depreciation adjustment for the current year ending December 31 related to its investment in Kyle due to the excess of fair value over book value on these assets. What was the fair value of Kyle's depreciable assets on January 2, 2020?
Business
1 answer:
NARA [144]3 years ago
6 0

Answer:

The fair value of Kyle's depreciable assets on January 2, 2020 was $1,750,000

Explanation:

According to the given data we need to calculate first the following:

Warner Co. share of difference = $60,000 * 5years

= $300,000

Therefore, Because Warner Co. holds 40% of Kyle, Kyle Co.'s depreciable asset = $300,000 ÷ 40% = $750,000

Hence, in order to calculate the fair value of Kyle's depreciable asset on Jan 2, 2020 we would require to make the following calculation:

Fair value of Kyle's depreciable asset on Jan 2, 2020= $1,000,000 + $750,000

Fair value of Kyle's depreciable asset on Jan 2, 2020 = $1,750,000

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Dafna11 [192]

Answer:

Brandon needs to compare his salary to other employees of the company, he needs to pay special attention if:

  1. If the supervisors from other departments or units of the same company earn more than Brandon.
  2. If his own staff members earn a salary that is very similar to Brandon's.
  3. If his immediate superior earns a salary that is disproportionately higher than Brandon's.

4 0
3 years ago
Regarding competitive strategies, companies seek efficient manufacturing and productive employees to achieve ___________.
hoa [83]

Answer:

D. differentiation.

Explanation:

Option A - Low-cost leadership refers to the strategy in which the customers are getting the products at a low cost. Companies seek to achieve cost leadership, but with efficient manufacturing and productive employees cannot help them to achieve that.

Options B and C - With local employees, it is challenging to achieve global operation, and focused differentiation is the selling of unique products to the customers. So, those are wrong answers.

Option D - With the help of differentiation strategy, companies seek effective manufacturing and productive employees to attract customers to take their products from the thousands of products in the market. Therefore, it is the correct answer.

8 0
3 years ago
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 46,000 mini refrigerators, of whi
notsponge [240]

Answer:

                                                                     $

Sales                                                       8,800,000

Less: Cost of goods sold (W1)               5,241,739.13

Contribution                                          3,558,260.87

Less: Fixed manufacturing cost               598,000

Less: Fixed selling and admin cost          320,000

Net Income                                            2,640,260.87

<em>(W1) Cost of goods sold</em>

Direct Material                                  3,450,000

Direct Labour                                    1,196,000

Variable manufacturing cost              782,000

Variable selling cost                            600,000

Total variable cost                            6,028,000

Less:closing inventory                     786,260.87 (6,028,000/46,000*6,000)

COST OF GOODS SOLD                  5,241,739.13

8 0
3 years ago
An Organization pays $65,000 in Social Security taxes for its employees. When payroll liabilities are journalized, how mucus ent
tatyana61 [14]

Answer:

It's NOT $65,000

Explanation:

the test

7 0
2 years ago
If an item tends to be very expensive to repair, how might that affect your decision to purchase a warranty for it?
Musya8 [376]
You may decide to purchase a warranty because that will be way cheaper than paying to get it repaired a lot of times
3 0
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