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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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Devon, an accounts manager at a large electronics firm, does not have any direct international responsibilities; however, Devon
Nonamiya [84]

Answer:

Develop International management skills

Resolve commercial challenges. ...

Explanation:

Devon would most likely benefit from studying international business issues because it will help him:

1. Develop Management Skills: Devon might grow to a management position in an international company without having the required skills and knowledge on how to manage a multi-cultural business environment.

2. Resolve Commercial Challenges: Although Devon does not have international responsibilities, he might be appointed into a team or would be much more valued in the company if he proffers solution to commercial challenges. The ability to do so will be gained with a study in international business.

5 0
3 years ago
Hitachi, Ltd., reports total revenues of ¥9,616,202 million for its current fiscal year, and its current fiscal year-end unadjus
BartSMP [9]

Answer:

a.

Debit Bad debts expense:¥28,464,808,000

Credit Allowance for doubtful account:¥28,464,808,000

b.

Debit Bad debts expense: ¥45,958,700,000

Credit Allowance for doubtful account: ¥45,958,700,000

Explanation:

a. The amount of bad debts expense assuming uncollectibles:

0.4%x¥9,616,202,000,000=¥38,464,808,000

Unadjusted trial balance reports a credit balance of ¥10,000 million for the allowance for doubtful accounts, Hitachi must recording the difference amount: ¥38,464,808,000-¥10,000,000,000=¥28,464,808,000

b.The amount of bad debts expense assuming uncollectibles:

2.0%x¥2,797,935,000,000=¥55,958,700,000

Unadjusted trial balance reports a credit balance of ¥10,000 million for the allowance for doubtful accounts, Hitachi must recording the difference amount: ¥55,958,700,000-¥10,000,000,000=¥45,958,700,000

6 0
3 years ago
Tanner, Inc. incurred a financial and taxable loss for 2018. Tanner therefore decided to use the carryback provisions as it had
inessss [21]

Answer:

The refund claimed should be shown as a benefit due to loss carryback in 2018.

Explanation:

Since Tanner, Inc. incurred a financial and taxable loss for 2018. and decided to use the carryback provisions as it had been profitable up to this year, the amounts related to the carryback should be reported in the 2018 financial statements as a benefit due.

Tax loss carryback is when a corporation <u>retrospectively adjusts its tax returns for prior periods</u> if it incurs a net operating loss (NOL) in current period.

The loss carryback <u>generates a tax refund</u> for the business because it reduces previous year tax liability. After the carried back loss is applied, it will be <u>as though the business overpaid taxes the previous year; which will now be shown as a benefit in the current year</u>

4 0
3 years ago
TB MC Qu. 08-104 Marlow Company purchased a point of... Marlow Company purchased a point of sale system on January 1 for $3,400.
Fittoniya [83]

Answer:

$680

Explanation:

Calculation to determine What would be the depreciation expense for the first year of its useful life using the double-declining-balance method

Depreciation expense=3400*(100%/10 * 2)

Depreciation expense=3400*.2

Depreciation expense= 680

Therefore What would be the depreciation expense for the first year of its useful life using the double-declining-balance method is $680

3 0
2 years ago
the term structure of interest rates is a. the relationship among interest rates of different bonds with the same maturity. b. t
AveGali [126]

The term structure of interest rates is the relationship between interest rates or bond yields and different terms or maturities.

What is Term Structure of Interest Rates?

The yield curve, also known as the term structure of interest rates, represents the interest rates of bonds of comparable quality but different maturities. The interest rate term structure shows market participants' expectations for future interest rate adjustments as well as their evaluation of the state of monetary policy.

The relationship between interest rates or bond yields and various terms or maturities is, in essence, the term structure of interest rates. The term structure of interest rates is referred to as a yield curve when it is graphed, and it is extremely important in determining the state of an economy at any one time.

To know more about term structure of interest rates refer:

brainly.com/question/13623212

#SPJ4

5 0
1 year ago
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