Answer:
Requirement 1 :
Excel Motors should use the Equity method to account for its investment in Dynamic Motors, because the investment results in significant influence over the invested company.
Requirement 2 :
In the books of Excel Motors:
[ Kindly find the attachment ]
The overall capitalization rate by direct market extraction assuming each property is equally comparable to the subject is 11.4%
Explanation:
Capitalization is the accounting of expenditures and the regular distribution of investments in fixed reserves over future years. Capitalisation, in other words, includes an expense usually documented in a temporary account and reported as an income account on a permanent basis.
Take the average of the three property capitalization rates to find the overall capitalization rate.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Choice B. Economics is the study of the ways in which money is created and used in society.
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