1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Semenov [28]
3 years ago
5

ABC Company owns 30% of the outstanding shares of Teal Company. At the beginning of the current year, the carrying value of Teal

's stock on ABC's balance sheet was $60,000. During the period, Teal paid dividends of $10,000 and reported a net income of $40,000. What is the carrying value of Teal's stock on ABC's balance sheet at the end of the year?
Business
1 answer:
BabaBlast [244]3 years ago
6 0

Answer:

$69,000

Explanation:

Percentage of shares owned by ABC in Teal's company = 30%

This is an example of equity method investment , and a portion of the attributable income at the end of the year is earned and added to the initial stock.

Attributable income is the remaining income after dividends have been settled.

<u>Workings</u>

The opening carrying value of the shares on ABC balance sheet = 60,000

Profit made at the end of the period = 40,000

Dividends paid = 10,000

Attributable income to share holders = 40000-10000 = 30,000

ABC portion of attributable profit = 30000*30% = 9,000

Carrying value at the end of the year = opening carrying value + portion of the attributable profit

=60000+9000=69000

You might be interested in
Assuming there are only two types of outputs in a country: consumer goods and nuclear missiles. All else being constant, as the
kotykmax [81]

Answer:

C. every additional missile will reduce consumer goods production more and more.

Explanation:

As more missiles are being produced, there would be less resources available to produce consumer goods. So, the production of consumer goods would reduce.

The production possibility frontier explains this concept

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

8 0
4 years ago
The loan review department at a major regional bank has an exceptionally high turnover of both administrative assistants and ana
Ray Of Light [21]

Answer:

Letter B is correct. <em>Organizational.</em>

Explanation:

Employee turnover is measured by an index that checks employee entry and exit rates in an organization. When the turnover rate is high it means that an organizational analysis should be performed to detect the possible causes of increased employee turnover.

It can be caused by situations related to organizational structure, such as failures in the selection process, unfavorable organizational climate that causes conflicts and demotivation, low benefits and compensation among others.

8 0
4 years ago
The _________________ is a resource that provides information on a wide variety of occupations, which also includes information
levacccp [35]
The lovely world of Internet. C:
4 0
4 years ago
Read 2 more answers
Company A makes canned tomatoes. The plant operates around the clock and has a long conveyor belt to take the
Dima020 [189]

<u>Answer:</u>

bulk

<u>Explanation:</u>

The Tomatoes are produced in a bulk and the canned products are sent out in batches but the process of moving tomatoes from receiving through packaging and processing is done on a conveyor belt which is a continuous process.

Therefore, the production of tomatoes in a bulk is a continuous process which goes on around the clock on a conveyor belt and the final products are sent out in batches which have their own unique identity number.

4 0
3 years ago
10. Which of the following is an<br> example of system software?
OLEGan [10]

Answer:

The computer's OS is a well-known example of system software. Widely used operating systems include Microsoft Windows, Mac OS and Linux.

8 0
2 years ago
Other questions:
  • Madsen Motors's bonds have 21 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon i
    5·1 answer
  • Explain how and why governments may want to regulate the price setting of a natural monopoly.
    15·1 answer
  • Sage Corporation manufactures two products with the following characteristics. Unit Contribution Margin Machine Hours Required f
    7·1 answer
  • JRE2 Inc. entered into a contract to install a pipeline for a fixed price of $2,200,000. JRE2 recognizes revenue upon contract c
    11·1 answer
  • Psychological needs are those for necessities such as safety, security and health. True False
    15·1 answer
  • On July 1, 2016 Harold paid $10000 for a Ten year bond with a stated interest rate of 5%, payable annually on July 1. On April 1
    12·1 answer
  • A service management tool has the ability to store templates for common incidents that define the steps to be taken to resolve t
    12·1 answer
  • Exercise 6.6 Closing entries. LO 6-1 The ledger accounts of AXX Internet Company appear as follows on March 31, 2019: ACCOUNT NO
    6·2 answers
  • The time to research a potential employer is _____.
    6·2 answers
  • How do embargoes most negatively affect a domestic market?.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!