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s344n2d4d5 [400]
3 years ago
14

Albuquerque, Inc., acquired 36,000 shares of Marmon Company several years ago for $900,000. At the acquisition date, Marmon repo

rted a book value of $950,000, and Albuquerque assessed the fair value of the noncontrolling interest at $100,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses.At the present time, Marmon reports $940,000 as total stockholders’ equity, which is broken down as follows: Common stock ($10 par value) $ 300,000 Additional paid-in capital 430,000 Retained earnings 210,000 Total $ 940,000 View the following as independent situations: a. & b. Marmon sells 10,000 and 2,000 shares of previously unissued common stock to the public for $42 and 22 per share. Albuquerque purchased none of this stock. What journal entry should Albuquerque make to recognize the impact of this stock transaction?
Business
1 answer:
mafiozo [28]3 years ago
4 0

Answer:

No Journal entries will be required in either instance. But a note to the financial statement would be appropriate in explaining the declining stake in Marmon Inc.

Explanation:

A. Total share valuation was $1,000,000. ($900,000 + $110,000) which is made up of Albuquerque's holdings and the non controlling interests. This is equivalent holding of 89% by Albuquerque.

*the investment would have been recognized at cost to Albuquerque at $900,000.

But when Marmon sold additional 10,000 shares the interest reduces to 63%

*This wouldn't necessitate any journal entry by Albuquerque as a result of the additional issues of shares but the % stake in Marmon would show to have reduced as a note in its financial records.

And when a further 2,000 was issued Albuquerque stake drops to 61%

* Again this wouldn't necessitate any journal entry by Albuquerque as a result of the additional issues of shares but the % stake in Marmon would show to have reduced as a note in its financial records.

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Raleigh Co. has the following products in its ending inventory. Compute the lower of cost or market total for inventory applied
Rom4ik [11]

Answer:

C. $2,018.00.

Explanation:

The computation of the lower cost or market value is shown below:

For Jelly

= 150 units × $2 per unit

= $300

For Jam

= 370 units  $2.50

= $925

And, for Marmalade

= 260 units × $3.05

= $793

So, the total inventory is

= $300 + $925 + $793

= $2,018

It is come by multiplying the quantity of each one by its lower cost or market value per unit

6 0
3 years ago
The Canon Corporation sells ten copiers to the Title Company on October 15 for $40,000. Canon delivers the copiers to Title on O
elena-14-01-66 [18.8K]

Answer:

$0

Explanation:

In this method, the transaction reporting will be performed on an accrual basis which means whether or not the payment is paid but it is reported in the account books.

Once the expenditure is incurred or the revenues is earned the same is to be recorded in the books of accounts whether cash paid or not and in case of revenues whether cash received or not

In the given case, the Canon corporation sells on October 15 so it would be recorded on October itself .

Therefore, no revenue would be recognized on the month of November

3 0
3 years ago
At times, someone with a good credit rating may not be able to get a loan. When this happens, the potential customer may be told
Sergio [31]

It can mean that the bank is running low on liquidity of cash. In the banks are required to keep a minimum of liquidity to be able to give loans and keep the cash flow. In case the bank is running low on liquidity the customer should inform the central bank and the central bank should fine the bank for not maintaining the liquidity.

3 0
3 years ago
A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or
ElenaW [278]

Answer:

Answer is the FCAC is greater than the TBC.

Refer below.

Explanation:

A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. If the cumulative actual cost is greater than the cumulative earned value, then: FCAC is greater than the TBC.

4 0
3 years ago
The United Nation of Zorwaya has strict restrictions on direct investment by foreign enterprises, and it opposes the establishme
max2010maxim [7]

Answer:

These are the options for the question:

A) deregulation  

B) socialism    

C) totalitarian ideologies

D) command economies

And this is the correct answer:

A) deregulation  

Explanation:

According to the information in the question, the nation of Zorwaya is regime where political leadership has tight control over economic matters. The highest authority controls both prices and production (a staple of socialism and planned economies), and opposes most foreign investment, only allowing it after strict scrutiny and tight control.

In this nation, political leadership would oppose deregulation because this would reduce their power over the economy. Deregulation would likely mean easening price controls, allowing production to flow more freely, or lifting restrictions to foreign capital, things that Zorwaya's leaders oppose.

6 0
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