Answer:
E. $560,000
Explanation:
Balance of Long term Investment
= Value of Investment - Pre Acquisition Dividend ($100,000*40%) + Share of Net Income ($500,000*40%)
= $400,000 - $40,000 + $200,000
= $560,000
Therefore, The balance in Madison Corporation's Long-Term Investment-Jay Corporation account as of December 31 should be $560,000.
Answer:
independent retailer, corporate chain, and contractual systems
Answer:
720
Explanation:
Given:
The management consulting team should comprise an accountant, a production specialist, a finance specialist, and a management specialist. On its staff, the consulting firm has available six accountants, five production specialists, three finance specialists, and eight management specialists
To find:
Number of different teams that could be formed from the available individuals
Solution:
Use combination to find number of ways to select y objects from x objects when the order in the selection process doesn't matter.
Number of ways to select an accountant, a production specialist, a finance specialist, and a management specialist from six accountants, five production specialists, three finance specialists, and eight management specialists =
Answer:
Explanation:
Pam and Jon's dividend income of $134,500 each [($185,000 Accumulated E&P + $111,000 current E&P) / 2],
Statement of distribution for shareholders for tax purpose :-
Pam Jon
Total distribution $185,000 $185,000
less: Dividend income $134,500 $134,500
<em> $50,500 $50,500</em>
less : Stock basis $25,900 $103,600
Capital gain $24,600 $0
Pam has a taxable gain of $24,600 which reduces the stock basis to $0, whereas Jon has not any taxable gain but the stock basis has reduced to $53,100 [$103,600- $50,500]
Answer:
Cost of goods sold to be reported in consolidated financial statement = $1,000,000
Explanation:
Whenever there is 100% or more than 50% holding in a company, then equity method is followed under which all of the items are to be consolidated, but in case where there are inter transfers that is transfer from holding to subsidiary or vice-versa then such transactions, profit not realized is to be eliminated.
In case where inventory is transferred to subsidiary after adding profit by holding company, then in case if that inventory is sold to third party by year end then entire profit is recognized even the profit added by holding to cost of goods sold to subsidiary.
Where in case such inventory is not sold further by subsidiary to third party and is still held in the stock then such profit added on sale by holding to subsidiary is eliminated.
In our case the entire inventory is sold to third party by the year end.
Therefore, entire profit will be recognized and cost of goods sold to be shown in consolidated financial statements = $600,000 + $400,000 = $1,000,000.
