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Alchen [17]
3 years ago
9

Columbus Company owns 25% of Zanesville Inc. and accounts for the investment using the equity method. During the year, Zanesvill

e Inc. reports a net loss of $1,602,000 and pays total dividends of $73,800. Which of the following describes the change in Columbus’s investment in Zanesville during the year? Select one: A. The investment increases by $326,700. B. The investment decreases by $232,750. C. The investment decreases by $418,950. D. The investment decreases by $400,500. E. None of the above
Business
1 answer:
MA_775_DIABLO [31]3 years ago
7 0

Answer:

The correct option is C,the investment decreases by $418,950.

Explanation:

The equity method of accounting for stock investment requires that the investor should increase its investment value by the share of net income in a year and decrease same by the amount of cash dividends received from  the investee company.

However,the opposite would be the case of net loss recorded in the year under review(share of net loss would be deducted from investment value) as shown below:

Share of net loss ($1,602,000*25%)    ($400,500)

share of cash dividends($73,800*25%)($18,450)

total reduction in investment value       ($418,950 )

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BSW Corporation has a bond issue outstanding with an annual coupon rate of 7 percent paid quarterly and four years remaining unt
Liono4ka [1.6K]

Answer:

$788.35

Explanation:

For computing the fair present value we need to apply the present value formula which is to be shown in the attachment below:

Given that,  

Future value = $1,000

Rate of interest = 14%  ÷ 4 = 3.5%

NPER =  4 years × 4 = 16 years  

PMT = $1,000 × 7% ÷ 4 = $17.5

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the formula, the fair present value is $788.35

3 0
3 years ago
Suppose the supply and demand for a certain textbook are given by ​supply: p equals one fourth q squared comma ​demand: p equals
Llana [10]

Answer:

the demand quantity and the supply quantity at a price of ​$15 is 8 units

Explanation:

Supply, P = 1/4 Q²

Demand, P = - 1/4 Q²+30

If P = 15

Quantity Demanded will be 15 = -0.25Q²+30;

if we move 30 across the equality sign.

Therefore -0.25Q²=-15; divide both sides by -0.25;

Q² = 60, Q = 7.746, approximately 8 units

Quantity Supplied will be 15 =  1/4 Q², dividing both sides by 1/4

Q² = 60, Q = 7.746, approximately 8.

6 0
2 years ago
Read 2 more answers
An existing client in her late 20s comes to the RR's office with her boyfriend. The couple are not married but they want to open
oee [108]

Answer:

1. As the RR, you should start acquiring all of the information needed to open the account from each joint owner.

2. Prior to purchasing the desired mutual fund, you should sit down with both joint owners and discuss the various risks associated with the investment.

Explanation:

In this situation, the RR must get all the relevant and important information that concerns opening the account and should also tell them the risks involved investing in such fund.

The RR should not just refuse to open the account because of risk he is not responsible for discussing what it means to open a JTWROS account.

Instead The RR has it as a duty to explain the implications of the JTWROS account to the client and her boyfriend

8 0
2 years ago
Sparks Corporation has a cash balance of $5,480 on April 1. The company must maintain a minimum cash balance of $5,000. During A
beks73 [17]

Answer:

d) $3,920

Explanation:

The computation of the borrowed amount is shown below:

= Beginning cash balance + expected cash receipts - expected cash disbursements - minimum monthly cash balance

= $5,480 + $56,200 - $60,600 - $5,000

= $3,920

We easily add to the starting cash balance the estimated cash receipts and deducted the expected cash disbursements and the minimum monthly cash balance, in order to get the correct value

5 0
2 years ago
Select the correct answer.<br> How is augmented reality used in businesses?
garri49 [273]

Answer:

It uses everyday things, items like iPhones or tablets, sensors and market to find the place of physical items and then suggest where to put virtual objects.

This might be a little off since I'm not very familiar with business stuff, but I hope this helps.

7 0
3 years ago
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