1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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>

You might be interested in
Commodity money is the best, safest kind of money.<br> Select one:<br> True<br> False
ladessa [460]
I would say true. Bcus it is made from silver
3 0
3 years ago
The impact of Inequality on businesses<br>​
ivanzaharov [21]

Answer: Plainly put, extreme income inequality, such as the kind found in Sub-Saharan Africa and South Asia, cause economic inefficiency. The relatively wealthy tend to save a much higher proportion of their income than the poor. In order to grow economically, a society must have robust rates of consumption. However, if most of the wealth of a country is owned by a very small percentage of its population, that wealth is saved, not spent. These savings are then invested by individuals and financial institutions.

Explanation:

3 0
3 years ago
When should you write a functional (skills) résumé?
stich3 [128]
B. when you are making a career change
6 0
3 years ago
Read 2 more answers
The Back Room just paid an annual dividend of $1.50 a share. The firm expects to pay dividends forever and to increase the divid
umka2103 [35]

Answer:

$26.05

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid = d0 x (1 + growth rate)

d0 = dividend that was just paid

r = cost of equity

g = growth rate

1.5 x (1.045^6) / 12 - 4.5 = $26.05

6 0
3 years ago
In the local paper, a car dealership advertises a small used car for a great price and a low interest rate loan. When Patrice co
Shkiper50 [21]

Answer:

False advertising.

Explanation:

The car dealership is showing some advertising that caughts public atention because it offers lower rates and cheap prices for a product that it may not even exist. This is why is called false advertising, because at the time costumer arrives to the dealership asking for the car advertised, they try to sell a different product that is even more expensive.

5 0
3 years ago
Other questions:
  • Hoping to increase the chances of reaching a performance goal, the director of a research project has assigned three separate re
    11·1 answer
  • Howard's Supply Co. suffered a fire loss on April 20, 2021. The company's last physical inventory was taken January 30, 2021, at
    12·1 answer
  • Hailey, inc., has sales of $19,630, costs of $9,400, depreciation expense of $2,070, and interest expense of $1,560. assume the
    15·1 answer
  • Pelican, Inc. had revenues of $395,000, expenses of $155,000, and dividends of $54,000 during the current year. Based on the giv
    13·1 answer
  • Olamide is a manager at a catering company, organizing an upcoming wedding. she will need to allocate a portion of her staff to
    9·1 answer
  • What best describes the difference between careers and industries
    9·1 answer
  • The tiny isolationist nations of Lorland and Zhangia are considering opening their borders to trade with each other. Both nation
    5·1 answer
  • What is one of the core concepts in IT
    13·2 answers
  • Frictional unemployment is inevitable because: Please choose the correct answer from the following choices, and then select the
    5·1 answer
  • Pablo assured his team that he would advocate for them to receive a much-deserved pay increase. However, when pablo met with the
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!