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Viktor [21]
3 years ago
13

"When a parent uses the partial equity method throughout the year to account for its investment in an acquired subsidiary, which

of the following statements is false before making adjustments on the consolidated worksheet?" "what adjustment is necessary for Hogan's Equipment account?"
Business
1 answer:
Sedaia [141]3 years ago
3 0

Options for the first question:

a? Goodwill will be recognized if acquisition value exceeds fair value of net assets acquired.

b? Parent company net income will be less than controlling interest in consolidated net income when fair value of net assets acquired exceeds book value of net assets acquired.

c? Subsidiary net assets are valued at their book values before consolidating entries are made.

d? Parent company net income will exceed controlling interest in consolidated net income when fair value of depreciable assets acquired exceeds book value of depreciable assets.

e? Parent company net income will equal controlling interest in consolidated net income when initial value, book value, and fair value of the investment are equal.

Information regarding the second question:

Book Value Fair Value

Buildings (10-year life) $10,000 $8,000

Equipment (4-year life) $13,000 $17,000

Land $5,000 $12,000

In consolidation at January 1, 2017, what adjustment is necessary for Hogan's Equipment account?

Answer:

Answer to the first question:

  • B) Parent company net income will be less than controlling interest in consolidated net income when fair value of net assets acquired exceeds book value of net assets acquired.

Answer to the second question:

  • The fair market value of the equipment is higher than the book value, therefore the equipment account must increase by = $17,000 - $13,000 = $4,000

Explanation:

The partial equity method is used when the company's stake is not significant in the subsidiary or when the parent doesn't exercise operating control over the subsidiary.

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After receiving the seller’s transfer disclosure statement, buyer clark rivers is not satisfied that all has been revealed. he’s
Neporo4naja [7]

Answer:

Both b. and c.

That is

b. i’m sorry, but the transfer disclosure statement covers all material facts that must be disclosed, and a person having aids is not a material fact, whether or not it would be applicable in this situation.

c. i’m sorry, but i am not permitted to answer this question, as it could be a potential civil rights violation, under the federal and state fair housing laws.

Explanation:

In the given instance the buyer if the property is asking if the previous tenant had AIDS and wants to use this information in the purchasing process. This is illegal and could result in legal action due to civil rights violation. Discrimination is not allowed in deciding to do business with another party, and the buyer is trying to discriminate on the grounds that the previous owner had AIDS.

Also in disclosing relevant information, wether the previous owner had AIDS is irrelevant to the sale of the house as it does not affect the quality of the house.

3 0
3 years ago
In the​ swim-lane format of a business process​ model, all​ _______ for a role are included in that​ role's swim-lane.
boyakko [2]
<span>In the​ swim-lane format of a business process​ model, all​ activities for a role are included in that​ role's swim-lane.

The swim lane is used to show flow diagrams or charts that list out the responsibilities of a business and its employees. These lanes can be arranged horizontally or vertically. Think of them as lap swim lanes in a pool, that helps keep the business roles in line. </span>
8 0
3 years ago
How can you make yourself "visible" when telecommuting?
Lesechka [4]
-Effective Remote Performance

-Company culture and customs

-Visibility with boss and co-workers.

-Call your Boss everyday

-Talk with Co-Workers everyday
4 0
3 years ago
Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 p
ycow [4]

Answer:

6.52%

Explanation:

For computing the nominal yield to call, first we have to find out the present value by applying the present value formula which is shown in the attachment below:

Future value = $1,000

Rate of interest = 6.50% ÷ 2 = 3.25%

NPER = 15 years  × 2 = 30 years

PMT = $1,000 × 8.25% ÷ 2  = $41.25

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $1,166.09

Now to determine the yield to call we use the RATE formula that is shown in the attachment below:

Present value = $1,166.09

Future value or Face value = $1,120

PMT = $1,000 × 8.25% ÷ 2  = $41.25

NPER = 6 years × 2 = 12 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the bond nominal yield to call is

= 3.26% × 2 years

= 6.52%

8 0
3 years ago
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $23,490 and variable exp
Mars2501 [29]

Answer:

Contribution margin ratio = Contribution margin / Sales

Product C90B CMR = ($23,490 - $7,047) / $23,490 = $16,443 / $23,490 = 0.7 = 70%

Product Y45E CMR = ($34,800 - $13,920) / $34,800 = $20,880 / $34,800 = 0.6 = 60%

The rule, <em>the Higher the contribution margin ratio, the lower the Break-Even point. </em>So, if sales mix shifts to product C90B, overall Break-even point <u>Decreases</u>.

8 0
3 years ago
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