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Doss [256]
3 years ago
10

On January 1, 20X8, Package Company acquired 80 percent of Stamp Company's common stock for $280,000 cash. At that date, Stamp r

eported common stock outstanding of $200,000 and retained earnings of $100,000, and the fair value of the noncontrolling interest was $70,000. The book values and fair values of Stamp's assets and liabilities were equal, except for other intangible assets which had a fair value $50,000 greater than book value and an 8-year remaining life. Stamp reported the following data for 20X8 and 20X9: Stamp Corporation Year Net Income Comprehensive Income Dividends Paid 20X8 $ 25,000 $ 30,000 $ 5,000 20X9 35,000 45,000 10,000 Package reported net income of $100,000 and paid dividends of $30,000 for both the years. Based on the preceding information, what is the amount of comprehensive income attributable to the controlling interest for 20X8?
Business
1 answer:
Hunter-Best [27]3 years ago
8 0

Answer:

Comprehensive income attributable to the controlling interest for 20X8 is $119,000

Explanation:

Stamp Corporation

Year             Net Income           Comprehensive Income          Dividends Paid 20X8             $ 25,000                       $ 30,000                            $ 5,000

20X9              $35,000                       $45,000                             $ 10,000

The amount of comprehensive income attributable to the controlling interest for 20X8 ;

Comprehensive income of Stamp Corporation = $30,000  

Less: Annual amortization of intangible assets acquired on acquisition (50000/8) = $6,250  

Comprehensive income of Stamp Corporation after adjustment = $23,750  

Income attributable to controlling interest = 80% × $23,750 = $19,000  

Net income of Package Company = $100,000  

Comprehensive income attributable to the controlling interest = Income attributable to controlling interest + Net income of Package Company

= $19,000 + $100,000

= $119,000

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Answer:

Explanation:

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Annual Coupons = 10% * 1000 = $100

b.) We have purchased the bond for $1000, so our investment is $1000

At the end of the year 1, we get a coupon of $100 and the selling price.

1st CASE - When monetary policy is tight.

New YTM = 12%

Time left to maturity (n) = 4 years

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Price = Coupon payment X PVAF(YTM, n) + Face Value X PVF(YTM, n)

[USE TABLES or Financial calculator]

Price = 100 X PVAF(12%, 4) + 1000 X PVF(12%, 4) = 100 X 3.307 + 1000 X .636 = 303.7 + 636 = $939.7

If we sell the bond, Return = (Coupon Received + Selling price - Purchase price ) \div Purchase price

= (100 + 939.7 - 1000) \div 1000 = .0397 or 3.97%

Scenario 2 - When monetory policy is loose

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Time left to maturity (n) = 4 years

Coupon payment = $100

Therefore, Price = Coupon payment X PVAF(YTM, n) + Face Value X PVF(YTM, n)

Price = 100 X PVAF(8%, 4) + 1000 X PVF(8%, 4) = 100 X 3.312 + 1000 X .735 = 331.2 + 735 = $1066.2

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or due to his success at his current company in getting several new patents. This is an example of ________ capital.
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Complete Question:

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D) intellectual

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In this scenario, Cesar was being recruited by a competitor due to his success at his current company in getting several new patents. Therefore, this is an example of intellectual capital because he was recruited based on his intangible assets which made him excel or succeed.

An intellectual capital can be defined as the value or intangible assets such as skills, copyright, trademarks, experience, patents, knowledge provided by the employees working in an organization and thus, giving the organization a competitive advantage over their rivals in the same industry, as well as earn more profits, increase their customer base and creation of quality products.

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Details provided are

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Answer:

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