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
Damm [24]
3 years ago
6

Atlarge Inc. owns 30% of the outstanding voting common stock of Ticker Co. and has the ability to significantly influence the in

vestee’s operations and decision-making. On January 1, 2018, the balance in the Investment in Ticker Co. account was $402,000. Amortization associated with the purchase of this investment is $8,000 per year. During 2018, Ticker earned income of $108,000 and paid cash dividends of $36,000. Previously in 2017, Ticker had sold inventory costing $28,800 to Atlarge for $48,000. All but 25% of this merchandise was consumed by Atlarge during 2017. The remainder was used during the first few weeks of 2018. Additional sales were made to Atlarge in 2018; inventory costing $33,600 was transferred at a price of $60,000. Of this total, 40% was not consumed until 2019.What amount of equity income would Atlarge have recognized in 2018 from its ownership
interest in Ticker?
A. $19,792.
B. $27,640.
C. $22,672.
D. $24,400.
E. $21,748.

What was the balance in the Investment in Ticker Co. account at the end of 2018?
A. $401,136.
B. $413,872.
C. $418,840.
D. $412,432.
E. $410,148.
Business
1 answer:
dem82 [27]3 years ago
6 0

Answer:

C. $22,672

B. $413,872

Explanation:

a. The computation of Amount realized by Ticker is shown below:-

Unrealized profit = (48,000 - $28,800) × 25% × 30%

= $19,200 × 25% × 30%

= $1,440

Unrealized profit from Additional sales = ($60,000 - $33,600) × 40% × 30%

= $26,400 × 40% × 30%

= $3,168

Ownership Interest = (Earned income × Outstanding percentage) + Unrealized profit - (Investment + Unrealized profit from Additional sales)

= (108,000 × 30%) + $1,440 - ($8,000 + $3,618)

= $32,400 + $1,440 - $11,618

= $22,672

b. The computation of balance in the Investment is given below:-

Balance of investment = Investment + Interest - Dividend

= $402,000 + $22,672 - ($36,000 × 30)

= $402,000 + $22,672 - $10,800

= $413,872

You might be interested in
You need a 35-year, fixed-rate mortgage to buy a new home for $340,000. Your mortgage bank will lend you the money at an APR of
grin007 [14]

Answer: $338712.36

Explanation:

Given the following :

APR = 6.35% = 0.0635

Monthly payment = $1800

Cost of home = $340,000

Period (t) = 420

Monthly rate = 0.0635 / 12

Amount paid on loan = PV of monthly payment :

PMT(1 - (1 / (1 + r)^t)) / r

1800[(1 - (1 / (1 + 0.0635/12)^420)) / r]

1800[ (1 - (1 /9.1764488)) / r

1800[ 1 - 0.1089746] / (0.0635 / 12)

1800 [168.38275]

= $303088.95

Hence, amount yet to pay :

$340,000 - $303088.95 = $36911.05

Hence, balloon payment :

36911.05( 1 + r)^t

36911.05(1 + 0.0635/12)^420

36911.05(1 + 0.0052916)^420

36911.05(1.0052916)^420

36911.05 × 9.1764488

= $338712.36

8 0
3 years ago
Kapcom Telecom wants to implement an on-the-job training program for the sales staff who are unaware of the technical aspects of
leva [86]

Answer:

situational restraints

Explanation:

Based on the information provided within the question it seems that this scenario is illustrating situational restraints. These are factors that act as barriers preventing certain behaviors or performances. Which is the case since the company wants and needs a training program but they do not have the personnel or the money to hire professional IT trainers. Therefore placing a barrier on the knowledge and skills that are needed from the training program.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
Why do we record Direct deposits into the CPJ
Oksi-84 [34.3K]

Explanation:

Because those payments are done for creditors, repayment of loans and other expenses

6 0
2 years ago
The value-added is:
kondor19780726 [428]

Answer:

The correct answer is letter "C": sales minus costs of intermediate goods.

Explanation:

Value Added is used to describe the extra something a company does to a product that makes it worth more than the cost of its underlying parts. For economists, value-added is the <em>difference between the gross revenue for an industry</em> (sales) <em>and the sum of the labor, materials, and services </em>(intermediate goods) <em>purchased to produce the goods that generated the revenue.</em>

8 0
3 years ago
A manager must decide on the mix of products to produce for the coming week. Product A requires three minutes per unit for moldi
atroni [7]

Answer:

Check the explanation

Explanation:

Going by the question above we will have to first work on the

Formulation of LP:

Maximize profit

Z = 1.5A+1.5B where A - number of units of product A and B - number of units of product B

subject to constraints -

600 minutes available for molding

3A+2B <=600 ---> Molding constraint---> 1

600 minutes available for painting

2A+4B<=600 ---> Painting constraint---> 2

420 minutes available for packing

A+3B<=420 ---> Packing constraint---> 3

A, B, C >=0 ---> Non-negative constraint ---> 4

b) Solution with the help of Excel solver:

Target cell will be the RHS or profit value of the objective function as we are maximizing the profit.

Changing cells will be A and B ---> number of units of products

Constraints will be entered as below. The same are also listed in part A (1,2,3,4).

The attached images below are the formulation.

6 0
3 years ago
Other questions:
  • During the year, a corporation declares a dividend and subsequently distributes to a stockholder $15,000 in cash and a bond with
    5·1 answer
  • Which of the following is a true statement? a. ​The perpetrator may start looking coworkers directly in the eye when talking to
    11·1 answer
  • Under what scenario could fiscal policy make a recession even worse?
    15·1 answer
  • Tom works as an agent for a large insurance company. at his work station, he has taped pictures of his wife and granddaughter an
    8·1 answer
  • Retail Music, Inc., offers to buy from Super Products Corporation (SPC) 1,000 blank CDs of a certain brand. Without notifying Re
    14·1 answer
  • Lisa consumes only pizzas and burritos. In equilibrium, her marginal utility of pizza is 40 and her marginal utility of a burrit
    12·1 answer
  • This step in international market research often relates to the cost of collecting primary data that can address the research pr
    15·1 answer
  • Consider each of the transactions below. All of the expenditures were made in cash.
    7·1 answer
  • The traditional economic framework assumes that people make rational economic decisions, that is, that they act in ways that max
    13·1 answer
  • The market price of a security is $50. Its expected rate of return is 14%. The risk-free rate is 6%, and the market risk premium
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!