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REY [17]
3 years ago
10

Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paar’s equipment (10-year remaining life)

has a book value of $420,000 but a fair value of $520,000. Kimmel has equipment (10-year remaining life) with a book value of $272,000 but a fair value of $400,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2017, Paar has equipment with a book value of $294,000 but a fair value of $445,200. Kimmel has equipment with a book value of $190,400 but a fair value of $357,000. The consolidated balance for the Equipment account as of December 31, 2017 is $574,000. What would be the impact on consolidated balance for the Equipment account as of December 31, 2017 if the parent had applied the initial value method rather than the equity method?
Business
1 answer:
iogann1982 [59]3 years ago
4 0

Answer:

The method the parent use will have no effect on consolidated total because it is only for internal reporting purpose.

Explanation:

Paar's equipment book value—12/31/15 of                   $294,000

Add Kimmel's equipment book value—12/31/15 of    $190,400

Add Original acquisition-date allocation to

Kimmel's equipment of ($400,000 − $272,000) =          $128,000

Less Amortization of Allocation

($128,000/10 years * 3 years) =                               ($38,400)

<h3>Equals Consolidated Equipment of     $574,000 </h3>

The method the parent use will have no effect on consolidated total because it is only for internal reporting purpose.

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YOUR ANSWER WOULD BE 3. THERE IS NO GOLD SANDARD BACKING THE BILL.

Explanation:

IT MAKES THE MOST SENSE OUT OF ALL OF THEM

4 0
3 years ago
During later project stages, as pressures to meet project schedule goals increase, the culture of the project is more conducive
Vikki [24]
The statement above is FALSE.
During later project stages, .........................., the culture of the project is LESS conducive to making changes in work progress.
When a project is drawing to a close, it becomes relatively difficult to make important changes to the project plan. At this stage, any change in plan that is effected will be much costly compare to if the change has been made in the earlier stages.
7 0
3 years ago
According to the Monetarist theory, _____________is a critical causal force that determines the nominal GDP..
aivan3 [116]

Answer:

money supply

Explanation:

Monetarists are a branch of new classical economists that, as the name  suggests, believe that money has a very important part to play within an  economy.They believe that aggregate expenditures in the economy are influenced by the  market rate of interest, and therefore money can affect the level of output in the  short run economy.However, they further believe that money influences the long run unemployment  in the economy. If monetary policies are used to increase aggregate demand, it is  thought that this use of additional money may cause a short term boost in output,  but will ultimately lead to inflation in the economy.

So the answer is money supply

7 0
4 years ago
Find the annual percent increase or decrease that y = 0.35(2.3)x models.
marishachu [46]

its B 130%.


(Says I need to write at least 20 characters, sooo hows your day going?)

                                                                                                                                                                       

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3 years ago
Understanding how income is distributed within and across populations informs firms of different groups':_____.
LuckyWell [14K]

Understanding how income is distributed within and across populations informs firms of different groups purchasing power.

This is further explained below.

<h3>What is purchasing power.?</h3>

Generally, The buying power of a certain currency is defined as the number of goods and services that can be acquired by spending a specific amount of that money.

For illustration purposes, in the 1950s, if one went to a store with one unit of cash, they would have been able to buy whatever was on the shelf.

Income: money that is earned, often on a regular basis, as a direct or indirect consequence of one's job or investing activities.

In conclusion, Firms need to have an understanding of the distribution of income both within populations and between populations in order to determine the buying power of various groups.

Read more about purchasing power.

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4 0
2 years ago
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