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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)

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Answer:

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Explanation:

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- all points on the curve are points of maximum productive efficiency

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Answer:

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Explanation:

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Statement of concepts guide the FASB in developing well researched and informed accounting principles that reflects the contents and inherent limitations that will be used in developing standards of financial accounting and reporting.

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In classical conditioning, the ns becomes a ________ after it reliably signals the occurrence of the ________.
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For example, a cat staring at a can of food (unconditioned stimulus) reacts differently to the sound of a can opener being struck on any surface (neutral stimulus). But if you condition a cat to believe that striking a can opener on any surface signals it will eat a can of food, the neutral stimulus becomes the conditioned stimulus.

Learn the difference between classical and operant conditioning here: brainly.com/question/17583598

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