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
torisob [31]
3 years ago
7

Dodge, Incorporated acquires 15% of Gates Corporation on January 1, 2011, for $105,000 when the book value of Gates was $600,000

. During 2011 Gates reported net income of $150,000 and paid dividends of $50,000. On January 1, 2012, Dodge purchased an additional 25% of Gates for $200,000. Any excess cost over book value is attributable to goodwill with an indefinite life. The fair-value method was used during 2011 but Dodge has deemed it necessary to change to the equity method after the second purchase. During 2012 Gates reported net income of $200,000 and reported dividends of $75,000. The income reported by Dodge for 2012 with regard to the Gates investment is a. $80,000. b. $30,000. c. $50,000. d. $15,000. e. $75,000.
Business
1 answer:
IceJOKER [234]3 years ago
5 0

Answer:

a. $80,000

Explanation:

In this question we are only concerned about the net income reported by Dodge on its income statement.

First we need to calculate ownership % in 2012 = 15% + 25% = 40%

Net income of 2012 (Gates) = $ 200000

hence Dodge will report net income of 40% of 200000 = $80000

Hence the correct answer is A

Note: Dividends will not affect the investors net income but it would reduce the investment value of Gate reported by Dodge (as it is seen as a return on investment)

You might be interested in
The hernandez family budgets $420 a month for food. last month they spent $413, which creates a?
MAVERICK [17]

A budget surplus of $7

<h3>What is a budget surplus's opposite?</h3>

A budget deficit is the polar opposite of a budget surplus. If a company (or government) has a budget deficit, it signifies that over the given timeframe, it spent more money than it brought in. A business's budget deficit could necessitate a budget reform for the upcoming fiscal year, even though a budget deficit for the government is not always negative for spending.

<h3>What does the term "surplus" mean?</h3>

A surplus is a sign that the government is being run efficiently. When government income is higher than government expenditures for a specific time period, typically a fiscal year, there is a surplus, which is a positive number.

<h3>How is inflation caused by a budget surplus?</h3>

Nevertheless, inflationary pressures can also exist when the economy is struggling. In essence, a rise in the money supply is what causes inflation. In light of the foregoing, a budget surplus will drain funds from the economy, hence lowering the money supply and fostering a deflationary environment.

Learn more about budget surplus:

brainly.com/question/26010226

#SPJ4

6 0
2 years ago
On June 1, 2017, Windsor, Inc. was started with an initial investment in the company of $22,420 cash. Here are the assets, liabi
vfiekz [6]

Question Completion:

Prepare an Income Statement for the month of June.

Answer:

Windsor, Inc.

Income Statement for the month ended June 30, 2017:

Service Revenue                  $7,730

Supplies expense    1,100

Maintenance and

  repairs expense     700

Advertising expense 400

Utilities expense       200

Salaries and

 wages expense    1,630   $4,030

Net Income                         $3,700

Explanation:

Windsor, Inc. Income Statement is where the revenues and expenses are summarized in order to arrive at the net income or profit of the business.  Temporary accounts are closed to the income statement.  These are accounts that are periodic in nature.  They are not permanent accounts, which are transferred to the next period.  The only element of the income statement that is taken to the balance sheet is the net income or loss.

3 0
3 years ago
A confidence interval, at the 95% confidence level, will be used to answer the question, "What is the mean annual salary (in US
Nimfa-mama [501]

Answer:

<em>The answer to the question is given below in the explanation section</em>

Explanation:

<em>From the question  we recall  the following</em>

<em>The mean: this is the  the value at  the center of the confidence interval which represents the quantity.</em>

<em>let Z* denotes when building the confidence level</em>

<em>]The mean = 289000, n = 36, standard deviation= 1342 </em>

<em> Z* for 95% Confidence Interval = 1.96 </em>

<em> The margin of error = 1.96*[1342/√(36)] = 438.39 </em>

<em> The 95% Confidence Interval is given by:</em>

<em> Lower CI = Mean - Margin of error = 289000 - 438.39 = 288561.61 </em>

<em> Upper CI = Mean +  Margin of error = 289000 + 438.39 = 289438.39 </em>

<em>When the sample is decreased to 20 Tesla owners, the confidence  interval widens.</em>

<em />

7 0
3 years ago
he most recent financial statements for Minnie's Manufacturing Co. are shown below: Income Statement Balance Sheet Sales 91,200
klio [65]

Answer:

The sustainable Growth Rate is 15.46%

Explanation:

Return on equity= (Net income/Equity Shareholder's Fund) * 100

= ($19,789 / $83,200) * 100

= 23.78%

Payout ratio is 35%.

Therefore, Retention Rate is 65% or 0.65

Sustainable Growth Rate = Return on Equity * Retention Rate

= 23.78% * 0.65 =

= 0.2378 * 0.65

= 0.15457

= 15.46%

Thus, the sustainable Growth Rate is 15.46%

5 0
3 years ago
A speaker talking about the benefits of cosmetic surgery to an audience primarily of women is appealing to which level of needs
Alex73 [517]
Esteem need and the need for self actualization
8 0
4 years ago
Read 2 more answers
Other questions:
  • A fast-food chain wanted to add a new product to its breakfast menu. The company considered a pancake shaped like a muffin. The
    9·1 answer
  • 2. Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?
    15·1 answer
  • Not all types of work are covered by a minimum wage.<br><br> True<br> False
    6·2 answers
  • The following lots of Commodity Z were available for sale during the year.
    6·1 answer
  • when you cannot determine a customers intended price range, what price level of product should you show​
    6·1 answer
  • Sedita Inc. is working on its cash budget for July. The budgeted beginning cash balance is $13,000. Budgeted cash receipts total
    13·1 answer
  • The Sit-Ins were accompanied by boycotts of businesses that insisted on segregation. This often meant that protesters would not
    15·1 answer
  • List two questions belonging to the field of morality
    11·1 answer
  • When businesses need to formalize the information provided to employees, customers, or other businesses, they often use which ty
    13·1 answer
  • A nonprofit organization is not a business.<br> A). True <br> B). False
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!