Answer:
There will be no recorded change because the equity method comes into play from the acquisition date
Explanation:
In the event that Hawkins Company purchases or acquires another 30 percent of Larker, Inc. to add to their initial 10 percent holding, there will be no change in the investor report. This is because using the equity method, any investor report only starts taking into effect from the day the acquisition was made. Older statements and reports are not tampered with, as the investor did not have up to 40% of the company at that point in time.
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Answer:
c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.
Explanation:
Provided information,
There is a purchase of new production line. On which the company plans to charge depreciation as per straight line method for 5 years. As per the recent amendment the company has to charge depreciation fr 7 years under straight line method.
Thus, depreciation per year will be decreased.
As depreciation is an expense which is going to decrease with increase in duration, therefore, income will increase and accordingly taxes will increase.
Also the net balance of fixed assets will be higher, as depreciation is less.
Therefore, correct statement is
c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.
Answer: c.$71 per machine hour
Explanation:
The Pre-determined Overhead rate is the rate Thomlin Company forecasted that the company would incur total overhead for the current year.
They forecasted total overhead of $11,597,000 with 164,000 total machine hours.
Since the rate is based on Machine Hours the rate would be,
= Total Forecasted Overhead / Total Forecasted Machine Hours
= 11,597,000 / 164,000
= 70.71
= $71