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Vika [28.1K]
3 years ago
11

Reagan Corp. acquired one hundred percent of Ford Inc. on January 1, 2016, at a price in excess of the subsidiary's fair value.

On that date, Reagan's equipment (ten-year life) had a book value of $360,000 but a fair value of $480,000. Ford had equipment (ten-year life) with a book value of $240,000 and a fair value of $350,000. Reagan used the equity method to record its investment in Ford. On December 31, 2018, Reagan had equipment with a book value of $250,000 and a fair value of $400,000. Ford had equipment with a book value of $170,000 and a fair value of $320,000. What is the consolidated balance for the Equipment account as of December 31, 2018? A. $387,000. B. $497,000. C. $508.000. D. $537,000.
Business
1 answer:
Artyom0805 [142]3 years ago
3 0

Answer:

B. $497,000

Explanation:

           Consolidated Balance of Equipment

Excess value at the acquisition                  $110,000

($350,000-$240000)

Book value as on Dec 31 2018 of Ford      $170,000

Book value as on Dec 31 2018 of Regent  $250,000

Less: excess depreciation                          <u>-$33,000  </u> ($110,000/10*3)

Consolidated balance of equipment        <u>$497,000</u>

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Hoffman Corporation retires its bonds at 106 on January 1, following the payment of semiannual interest. The face value of the b
Ipatiy [6.2K]

Answer:

B. credit of $4,200 to Gain on Bond Redemption

Explanation:

face value 400,000

callable at 106

cash disbursements 400,000 x 1.06 = 424,000

carrying value (after discount or premium) 419,800

as is higher than face value the onds have a premium for 19,800 dollars

result at redemption:

book value - market value

419,800 - 424,000 = 4,200

Journal entry

Bonds Payable       400,000 debit

Premium on BP         19,800 debit

    Cash                                      424,000 credit

   Gain on Bond of Redemption   4,200 credit

This makes B option correct.

7 0
3 years ago
A total of 6,850 kilograms of a raw material was purchased at a total cost of $21,920. The materials price variance was $1,370 f
xxMikexx [17]

Answer:

$3.40 per kilogram

Explanation:

Calculation for the standard price per kilogram for the raw material

Using this formula

Standard price per kilogram=(Raw Material total cost +Materials price variance)/Raw material kilograms

Let plug in the formula

Standard price per kilogram=($21,920+$1,370)/6,850

Standard price per kilogram=$23,290/6,850

Standard price per kilogram=$3.40 per kilogram

Therefore the standard price per kilogram for the raw material will be $3.40

3 0
3 years ago
Unit Test
ad-work [718]

The work value that Ramona feels the strongest is that the work with people

Explanation:

Work values are the values that are employed in a work place and there are many kinds of work values that develop the inter personal relationship between peoples

In the given statement she loves to work with the people in the after school program she loves to interact with the people talk with them and gain some personal experience and she feels them the strongest

4 0
3 years ago
The following two graphs show the markets for smartphones in Sweden and Norway. Use the graphs to answer the questions that foll
zalisa [80]

Answer:

Assume there are no transportation costs. With trade, the price of $22.5 brings about balance in exports and imports. At this price, 600 smartphones are traded. With trade, Sweden produces 900 smartphones and consumes 300 smartphones, and Norway produces 300 smartphones and consumes 900 smartphones.

Now suppose the per-unit transportation cost from Sweden to Norway is $5. With trade, the transportation cost changes the price of smartphones in Sweden to $25 and in Norway to $25. Sweden will produce 800 smartphones and consume 400 smartphones, thus exporting 400 smartphones. Norway will produce 400 smartphones and consume 800 smartphones, thus importing 400 smartphones.

Explanation:

With no transportation costs, Sweden shall export smartphones and Norway shall import smartphones because the market price is lower in Sweden than in Norway.

The demand and supply functions for smartphones in Sweden, derived from the given values, are:

Q_{D} = 1200 - 40P\\

Q_{S} = 40P

The export supply (ES) equation is:

ES = Q_{S} - Q_{D}

ES = 40P - (1200 - 40P)

ES = 80P - 1200

The demand and supply functions for smartphones in Norway, derived from the given values, are:

Q_{D} = 1800 - 40P

Q_{S} = 40P - 600

The import demand (ID) equation is:

ID = Q_{D} - Q_{S}

ID = 1800 - 40P - (40P - 600)

ID = 2400 - 80P

The equilibrium price and quantity traded is determined where ES = ID.

80P - 1200 = 2400 - 80P

This simplifies to P = 22.5

Q = 2400 - 80(22.5) = 600

Next, a transaction cost of $5 per unit is imposed from Sweden to Norway. This changes the ES function as follows.

New ES = 80(P - 5) - 1200

New ES = 80P - 1600

The new equilibrium is where New ES = MD.

80P - 1600 = 2400 - 80P

This simplifies to P = 25

Q = 80(25) - 1600 = 400

7 0
3 years ago
Many consumers are unhappy with the pervasiveness of marketing. They point out that advertising messages are everywhere, from we
scoray [572]

Answer:

E. Cultural pollution.

Explanation:

In marketing terminologies, cultural pollution implies pertaining to customs, beliefs, art and all the other products of human thought made by a particular group of people at a particular time. Culture provides a sense of identity; it defines who you are and maintains a sense of belonging. It validates our reason for being in this world, defining where we are headed in our lives. Cultural rules influence people to behave similarly, making it easier for them to identify with each other. It shapes attitudes, thinking, behavior and values. It is also normative, defining the standard for judging values and behavior.

3 0
3 years ago
Read 2 more answers
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