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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

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A busy small business owner is considering purchasing groceries through a premium home delivery service because of its convenien
jok3333 [9.3K]

Answer:

A busy small business owner is considering purchasing groceries through a premium home delivery service because of its convenience. The service provides the best groceries and costs significantly more than buying groceries in the store, but home delivery is an attractive feature. Examine the

opportunity costs and trade-offs of the small business owner choosing to buy groceries through this premium home delivery service. Compare your

findings with the opportunity costs and trade-offs if the small business owner were to choose buying groceries in the store instead.

Explanation:

Can i have brainliest i've gave lot's but never get

7 0
3 years ago
Jane and Ed Rochester are married with a 2-year-old child, who lives with them and whom they support financially. In 2019, Ed an
arlik [135]

Answer:

1) AGI = $112,400

2) Taxable Income = $80,600

Explanation:

Ed's Salary = $35,000

Jane's Salary = $70,000

Municipal bond interest income = $400

Qualified business income = $1,000

Alimony paid (for AGI deduction) = $7,000

Real property tax (from AGI deduction) = $10,000  

Charitable contributions (from AGI) = $15,000

The total gross income for Jane and Ed = $70,000 + $35,000 = $105,000

1) Their AGI (Adjusted Gross Income) = $105,000  + $400 + $7,000 = $112,400

2)Their taxable income = $112,400 - $24400 - $7000 - $400 = $80,600

7 0
3 years ago
What investment type typically carries the least risk
Angelina_Jolie [31]
Certificates of Deposit (CDs), U.S Treasury Bills, and savings accounts are generally regarded as the least risky investments, given that they are backed - at least up to a certain limit - by the U.S government. 

CDs are essentially fixed-term savings accounts, which means you must deposit your funds for a set amount of time, until the account reaches what is called "maturity." Withdrawing funds before this point typically leads to a fee. In return for sacrificing liquidity, CDs tend to offer higher interest rates than normal savings accounts. These rates are most often fixed, though they sometimes come with a feature that enables you to readjust your interest rates once over your account's lifetime. Bank-issued CDs are also insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor, though this figure has dropped to $100,000 January 1, 2014. Credit Union-issued CDs are insured by another government agency, the National Credit Union Administration (NCUA), which provides the same coverage as the FDIC. 

U.S Treasury Bills are sold by the government to investors as a way to fund short-term government debts. If you purchase a U.S Treasury Bill, you are basically loaning the government a certain amount of money in return for the government's promise to pay you back with a predetermined higher amount when the bill reaches maturity. U.S Treasury Bills are typically issued with maturity terms of one month, three months, six months and 1 year.

As we all know, savings accounts are offered by banks and credit unions and provide variable interest rates, which means their rates fluctuate in accordance with the Prime Rate. While there is no time requirement for a savings account, as there is with a CD, the law only allows consumers to make up to six transfers or withdrawals from a savings account per month (not including in-person ATM or branch withdrawals). Savings accounts offer the same as insurance protections as CDs.

Hope this helps you =)

6 0
3 years ago
One consumer promotion tool is​ __________, which are goods offered free or at a low cost as an incentive to buy a product.
Svetradugi [14.3K]
<span>Premiums are one consumer promotional tool where goods are offered at either a free or low cost to entice consumers to buy the product because of its. This allows companies to move products that they may have difficulty selling without the price reduction or that have low demand among consumers.</span>
4 0
3 years ago
Our company originally issued 1,000 shares of $1 par value common stock for $9 per share. We repurchased 200 shares of the stock
cestrela7 [59]

Answer:

D.cahs $18,000

Explanation:

cash $18,000

3 0
3 years ago
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