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ddd [48]
3 years ago
7

g On January 2, Yorkshire Company acquired 34% of the outstanding stock of Fain Company for $400,000. For the year ended Decembe

r 31, Fain Company earned income of $104,000 and paid dividends of $32,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.
Business
1 answer:
bija089 [108]3 years ago
3 0

Answer:

See the explanation below:

Explanation:

Share of profit of Fain Company = $104,000 * 34% = $35,350

Dividend received = $32,000 * 34% = $10,880

<u>Date             Details                                                 Dr ($)              Cr ($)   </u>

Jan. 2           Investment in Fain Company           400,000

                    Cash                                                                         400,000

<em><u>                     To record payment for investment in Fain Company           </u></em>

Dec. 31         Investment in Fain Company             35,350

                    Share of profit of Fain Co.                                        35,000

<em><u>                     To record share of profit in Fain Company                           </u></em>

Dec. 31         Cash                                                     10,880

                    Investment in Fain Company                                    10,880

<em><u>                     To record received from investment in Fain Company       </u></em>

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denis-greek [22]

A favorable supply shock is a sudden increase in supply that makes the short-run aggregate supply curve (SRAS) shift to the right, average price levels go down and real GDP also shifts to the right. In this case, average price levels go down as shown in the figure below from p1 to p2 SRAS shifts right.

This may make create deflation in an economy and discourage new producers to enter the market, to bring back inflation, the central bank may reduce interest rates and decrease the money supply in the market, and in short, will follow expansionary monetary policy. This will make people demand more and hence as aggregate demand shifts to correct average price levels may again go up. This move will create new jobs in the market as aggregate demand will increase in the short term.

A supply shock is an event that causes unexpected cost increases or production disruptions. This shifts the short-run aggregate supply curve to the left, boosting inflation and lowering real domestic production.

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6 0
1 year ago
In its income statement for the year ended December 31, 2019, Sheridan Company reported the following condensed data. Operating
olga55 [171]

Answer&Explanation:

Net Income Statment for the Year Ended December 31,2019

Net sales 2,416,300

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<em />

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6 0
3 years ago
An insurance policy sells for ​$1200. Based on past​ data, an average of 1 in 100 policyholders will file a ​$10 comma 000 ​clai
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Answer:

Expected Value = $740

Expected profit = $22.2m

Explanation:

We can easily calculate the expected value and expected profit/loss in this situation by some minor working

Expected values = Expected Claim - per policy cost

Expected profit/loss = (Expected claim - per policy cost) x number of policies

As you can see per policy cost and no of policies are given in the question data we just need to find expected claim for calculation of expected profit or loss and expected value

Expected Claim = (1/100x$10,000)+(1/250x$40,000)+(1/400x$80,000)

Expected Claim = 100 + 160 + 200

Expected Claim = 460

Now we have a value of expected claim lets put it into Expected profit/loss formula and expected value formula

Expected value = 460-1200

Expected value = -740

-$740 is the value per policy

Expected profit/loss = (460 - $1200 per policy) x 30,000

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3 0
3 years ago
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Yanka [14]

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This can be seen in the question when the sales associate advertised the video game system for a reduced price which wasn't available when customers wanted to buy but were offered a game that was costlier.

7 0
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Ugo [173]

Answer:

Tell and Vorn

Explanation:

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4 0
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