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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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Xelga [282]

Answer:

Departmental wage expenses for Dept. Y = 8,750 and Dept. Z = 10,250.

Explanation:

Direct wages of Y and Z sum 2,000 + 3,500 = 5,500. The remaining expenses are the difference between total wage expense and direct wage expenses. That means indirect expenses are 19,000 - 5,500 = 13,500. These has to be allocated half for each department.

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4 years ago
Abby, Bobbi, and Deborah each buy ice cream and paperback novels to enjoy on hot summer days. Ice cream costs $5 per gallon, and
umka2103 [35]

Answer:

b. The slope of the budget constraint is the same for each woman.

Explanation:

Budget Line is the combination of two goods that a consumer can buy, given prices & money income (all spent).

Equation : p1x1 + p2x2 = m ;

where p1 & p2 are price of good 1 & 2 , x1 & x2 are quantities of good 1 & good 2 , m = money income  

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Slope of Budget Line represents change (sacrifise) of a good needed to get change (gain) of other good, given same prices & income.

Slope = ΔY/ΔX = Px / Py

Since prices are same for each woman, price ratios & hence the slope of budget line will also be same for all of them.

3 0
3 years ago
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Charra [1.4K]

Starting the next task before the first task is complete is lead.

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A lead is, to put it simply, a person or group who is interested in what you are selling. Contact details are shared, such as an email address, a phone number, or even a social network account, to demonstrate the interest.

Learn more about Lead here brainly.com/question/5687830

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Marysya12 [62]

Answer:

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