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Andre45 [30]
3 years ago
9

Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000 on January 2, 2018. Du

ring 2016, Darby Company declared dividends of $100,000 and reported earnings for the year of $400,000.
If Blanco Company used the fair value method of accounting for its 20% investment in Darby Company, and its fair value at 12/31/18 is $680,000, the Investment (Darby) account on December 31, 2018 should be

a. $580,000.
b. $660,000.
c. $600,000.
d. $680,000.
Business
1 answer:
Kisachek [45]3 years ago
7 0

Answer:

The answer is c. $600,000

good luck ❤

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For the year, movers united has net income of $31,800, net new equity of $7,500, and an addition to retained earnings of $24,200
Serjik [45]

The amount of the dividends paid is $7600.

A company distributes dividends from its net income and transfers the balance amount to retained earnings.

Dividends Paid = Net Income - Retained Earnings = 31800 - 24200 =          $7600

Equity represents the fee that might be lower back to an agency's shareholders if all of the belongings were liquidated and all the employer's debts have been paid off. We also can think of fairness as a degree of residual ownership in a firm or asset after subtracting all money owed related to that asset.

The principal advantage of fairness financing is that there's no obligation to pay off the money obtained via it. equity financing locations have no extra economic burden on the company, however, the drawback can be quite big. The amount realized through the issue of new stock will not be used for dividend distribution. Only Net income is to be considered in the calculation.

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3 0
1 year ago
The fair value of net identifiable assets of a reporting unit of Y Company is $270,000. The carrying value of the reporting unit
12345 [234]

Answer: $310,000

Explanation:

From the question, we are informed that the fair value of net identifiable assets of a reporting unit of Y Company is $270,000 and that the carrying value of the reporting unit's net assets on Y Company's books is $320,000, including $50,000 of goodwill before any impairment. We are further told that the reported goodwill impairment for the unit is $10,000.

To calculate the fair value of the entire reporting unit, we deduct the goodwill impairment for the unit which is $10,000 from the carrying value of the reporting unit's net assets on Y Company's books which is $320,000. This will be:

= $320,000 - $10,000

= $310,000

4 0
3 years ago
"The direct method for preparing and reporting the statement of cash flows reports net income and then adjusts it for items nece
ruslelena [56]

Answer:

The correct option is A

Explanation:

The direct method is one of 2 accounting treatments used in preparing cash flow statement. The statemnet of cash flows direct method uses actual cash inflows and ouflows from a company's operations instead of modifying the operating section from accural accounting to a cash basis.

6 0
3 years ago
Amanda Rice has just arranged to purchase a $640,000 vacation home in the Bahamas with a 20 percent down payment. The mortgage h
DedPeter [7]

Answer:

$458,197

Explanation:

I prepared an amortization schedule using an excel spreadsheet (which I attached).

purchase price $640,000

down payment $128,000

mortgage principal $512,000

APR 7%

monthly payment $3,406.35

principal's balance at the end of year 8 (month 96) = $458,197

Download pdf
7 0
3 years ago
An article in the Wall Street Journal noted that the demand for video Internet advertising was increasing at the same time that
Andrei [34K]

Answer:

c.

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5 0
3 years ago
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