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
ValentinkaMS [17]
3 years ago
15

On January 1, 2018, Race Corp. acquired 80% of the voting common stock of Gallow Inc. During the year, Race sold to Gallow for $

450,000 goods that cost $330,000. At year-end, Gallow owned 15% of the goods transferred. Gallow reported net income of $204,000, and Race's net income was $806,000. Race decided to use the equity method to account for this in
Business
1 answer:
andreyandreev [35.5K]3 years ago
3 0

Answer:

Consolidated income: 954,800 dollars

Explanation:

Gallow income x race participation:

    $   204,000    x   80%   = $ 163,200

The gross profit in the infra-entity transaction will be eliminated

$ 450,000 - $ 330,000 = $ 120,000 gross profit

15% remains at Gallow so: $ 120,000 x 15% = $ 18,000 gross profit for the unsold inventory.

We now multiply by Race participation: $ 18,000 x 80% = $ 14,400 unrealized gain.

Consolidated income:

Race income:   806,000

Gallo income    163, 200

unrealized gain (14, 400)

Total:                954,800

You might be interested in
An owner who is active in managing the company, and who has unlimited liability for claims against the firm is a(n) ___________
Law Incorporation [45]

An owner who is active in managing the company, and who has unlimited liability for claims against the firm is a "general" partner.

A general partnership, the essential type of association under common law is a course of action by which at least two people consent to partake in all advantages, benefits and monetary and legitimate liabilities of a business. Such partners have boundless liability, which implies their own assets are at risk to the partnership's commitments.  

6 0
3 years ago
Can I own a prepaid debit card if I'm underage? (not a joint one, like literally own it by me) lol​
EastWind [94]

Answer:

No

Explanation:

Most banks require you to be either of age, or have a joint account with either a parent or guardian. It really depends on the bank.

4 0
3 years ago
Read 2 more answers
Explain how each of the following will affect the net public​ debt, other things being equal. a. ​Previously, the government ope
gayaneshka [121]

Answer:

A. - The net public debt decreases

The net public debt decreases because the government has obtained more funds in tax revenue. For this reason, the government will likely run a budget surplus.

B. - The net public debt increases

The government was already running a budget deficit (albeit a small one). With the effects of the hurricane, the government will have to spend more to help the people affected, and will likely have to borrow even more, increasing its deficit.

C. - The net public debt remains unchanged

There was a transfer of funds from one government agency to the other, and the net effect of such transfer is likely to be very small to make any significant change in the net public debt. The net public debt remains unchanged.

4 0
3 years ago
1. Beginning inventory plus net purchases equals
Morgarella [4.7K]

Answer:

D. cost of goods available for sale.

Explanation:

The cost of goods available for sale, also known as the total inventory, represents the total amount of finished products that a company had in its store for selling. The calculation of costs of goods available for sale involves adding beginning stock to the net purchases.

Beginning inventory is the ending balance in the previous financial period. It is the finished product balance brought forward of the prior period. Net purchases are the purchases adjusted for discounts and purchase returns. The costs of goods available for sale minus ending inventory will equal to the costs of goods sold.

5 0
3 years ago
On January 1, Year 1. a company issues $100.000 of 8% bonds maturing in 10 years when the market rate of interest is 9%. The bon
Margarita [4]

Answer:

b) The company will incur a loss

Explanation:

The market rate at the time of issue = 9%, while coupon rate = 8%, it says bonds provide lesser return when compared to the market rate.  

At end of year 2 market rate drops to 6% which is lower than the Bond's coupon rate. Which means the bond's providing high return when compared to the market. So, company to retire the bonds need to pay more than the par value.

As company should retire these bonds more than par value, the company incur a loss.

Option 'B is correct

The company incur a loss

5 0
3 years ago
Other questions:
  • The president of a growing engineering firm wishes to give each of 20 employees a holiday bonus. how much needs to be deposited
    5·1 answer
  • Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit card
    5·1 answer
  • If Expenses are greater than income, you have a surplus
    15·1 answer
  • Assuming that there are no income taxes, what would be the ROI and residual income, respectively, for this equipment, which has
    13·1 answer
  • What rule did Michael Jordan break by wearing Air Jordans out onto the basketball court?
    6·1 answer
  • Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following da
    14·2 answers
  • A fire destroyed some of Cholla, Inc.’s records. Information from the documents found related to inventory is listed below. Endi
    7·1 answer
  • Carillo Industries collected $108,000 from customers in 2017. Of the amount collected, $25,000 was for services performed in 201
    11·1 answer
  • Historical Art is a new business. During its first year of operations, credit sales were $50,000 and collections from credit sal
    6·1 answer
  • What's your annual income if you're unemployed?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!