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REY [17]
3 years ago
9

On April 1, 2021, BigBen Company acquired 30% of the shares of LittleTick, Inc. BigBen paid $100,000 for the investment, which i

s $40,000 more than 30% of the book value of LittleTick's identifiable net assets. BigBen attributed $15,000 of the $40,000 difference to inventory that will be sold in the remainder of 2021, and the rest to goodwill. LittleTick recognized a total of $20,000 of net income for 2021, and paid total dividends for the year of $10,000; these dividends were issued quarterly. BigBen's investment in LittleTick will affect BigBen's 2021 net income by:________
Business
1 answer:
Allushta [10]3 years ago
8 0

Answer:

$10,500 loss

Explanation:

The computation of the net income affected is shown below:

Since Big Ben purchased shares of  Little Trick on 1st April ,so it has the right to receive 30% of the net income for nine months  i.e from April 1 to December 31

Now the Earnings from Little Trick is

= $20,000 × 30% × 9 months ÷ 12 months

= $4,500

And, the Compensation paid is $15,000

So, the loss is

= $15,000 - $4,500

= $10,500

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Though, in decentralization power is also in hands of lower managers, middle managers, etc the top level managers still hold the rights to make decisions.
6 0
3 years ago
One way businesses can solve ethical dilemmas is through:
Viefleur [7K]

Answer: D

Explanation:

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8 0
3 years ago
Floyd owns a chain of diners. He prefers to recruit employees from different ethnic and cultural backgrounds. When he hires new
rewona [7]

Answer:

awareness training

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6 0
3 years ago
Read 2 more answers
"If Jason receives his quarterly bonus of $3,000 and spends $2,100 on a computer and puts the rest in his savings account, what
snow_lady [41]

Answer: 0.70; 0.30

Explanation:

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Increase in spending = $2,100

Increase in savings = $3,000 - $2,100 = $900

MPC = $2,100/$3,000

= 0.70

MPS = $900/$3,000

= 0.30

7 0
3 years ago
Sellers of a good bear the larger share of the tax burden when a tax is placed on a product for which the:
fenix001 [56]

Answer:

The correct answer is option ii.

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In the case of imposition of tax on a good, the suppliers will bear the greater share of burden if the demand is more elastic than the supply.  

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5 0
3 years ago
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