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
Fiesta28 [93]
2 years ago
10

On January 1, 2017, Alison, Inc., paid $60,000 for a 40 percent interest in Holister Corporation’s common stock. This investee h

ad assets with a book value of $200,000 and liabilities of $75,000. A patent held by Holister having a $5,000 book value was actually worth $20,000. This patent had a six-year remaining life. Any further excess cost associated with this acquisition was attributed to goodwill. During 2017, Holister earned income of $30,000 and declared and paid dividends of $10,000. In 2018, it had income of $50,000 and dividends of $15,000. During 2018, the fair value of Allison’s investment in Holister had risen from $68,000 to $75,000.
Assuming Alison uses the equity method, what balance should appear in the Investment in Holister account as of December 31, 2018?
Business
1 answer:
diamong [38]2 years ago
6 0

Answer:

It will be valued at:

investment 70,000

goodwilll 1,000

patent 4,000

total 75,000

Explanation:

first we calcualte the equity of the company:

200,000 - 75,000 = 125,000 equity

then we calcualtethe investment proportion:

125,000 x 0.4 = 50,000 investment

15,000 x 0.4 =      6,000 patent

goodwill:              4,000 (60,000 - 56,000)

2017

income: 30,000 x 0.4 = 12,000

dividneds: 10,000 x 0.4 = (4,000)

amortization on patent

6,000 / 6 = 1,000 per year

2018

income:    50,000 x 0.4 = 20,000

dividneds: 15,000 x 0.4 = ( 6,000 )

amortization on patent:    ( 1,000 )

50,000 + 12,000 - 4,000 - 1,000 + 20,000 - 6,000 - 1,000 = 70,000

then we add the patent and the goodwill

70,000 + 4,000 + 4,000 = 78,000

and wecheck for impairment:

as the fair value is 75,000 we decrease goodwill

You might be interested in
Hans is one of the most skilled employees at Grand Time, which is a clock manufacturing company that preserves the traditional a
kow [346]

Answer:

B. fine manipulative movements

Explanation:

It is correct to say that Hans is an employee with skills in the area of ​​fine manipulative skills, which corresponds to the ability to control the realization of movements with the hands of offal, as in the manufacture of manual pendulum clocks, where it is necessary to manipulate small objects for the carrying out a job with a good finish and standardization. The ability of fine manipulative movements allows him stability when performing a job that requires attention, coordination and control over the hands.

8 0
2 years ago
Excise taxes on gasoline and state sales taxes are often criticized for being regressive, even though everyone pays the same tax
romanna [79]

Answer:

Yes because a person with a lower income may tend to spend a greater share of his income on gasoline

Explanation:

For example, if a low income individual earning $1000 and a high-income person who earns $2000 each purchase 12 gallons of gasoline, the taxes on this purchase will consume a larger portion of the low-income person’s earnings than that of the high-income person. Assuming a tax rate of 5% of earnings multiplied by 12 Gallons.

Low income individual earnings after tax deductions= $400

High income individual earnings after tax deductions= $800

3 0
2 years ago
Assuming that increasing CO2 concentrations are directly linked to increased surface temperatures, which scenario should result
rodikova [14]

Answer:

E. None of the scenarios

Explanation:

3 0
2 years ago
Select the example that is inconsistent with the provisions of the UCC for contract remedies for a seller's breach of contract.
den301095 [7]

The example that is inconsistent with the provisions of the UCC for contract remedies for a seller's breach of contract is:

b.) A toy company sells a defective rocket launcher that injures a young boy. The sales contract excludes responsibility for all consequential damages related to the sale of its products, so the company only agrees to refund the cost of the defective toy.

<h3>What is UCC for contract remedies for a seller's breach of contract?</h3>

Consumers have up to six years to raise concerns relating to breach of contract, even though the goods under the contract may not last up to this period.  Therefore, the provision by the appliance manufacturer that buyers have a maximum of six months to raise concerns is inconsistent with the Uniform Commercial Code (UCC).  The code sets the same comprehensive laws for all commercial activities in the US.

Thus, option "C" is correct.

To learn more about UCC  click here:

brainly.com/question/13640672

#SPJ1

8 0
1 year ago
Government employment offices can help you find?
alexandr402 [8]
More than likely they can help you find jobs
3 0
3 years ago
Other questions:
  • An offer has been presented to the sellers of a property. they ask their agent to change the terms through a counter proposal. t
    15·1 answer
  • "fundamental disequilibrium," its government choose not to devalue its currency. a likely consequence of this would be
    5·1 answer
  • Blue Co. has a patent on a communication process. The company has amortized the patent on a straight-line basis since 2014, when
    6·1 answer
  • Any suggestions on a good movie?
    7·2 answers
  • Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom's engineers have been asked
    10·1 answer
  • The following selected account balances are provided for Delray Mfg.
    10·1 answer
  • The supply schedule is identical to the demand schedule at every price. b The quantity demanded is the same as the quantity supp
    10·1 answer
  • A maker of soaps and lotions noticed a blind person having difficulty comparing products while shopping in one of her stores. Sh
    13·1 answer
  • ꒻ꁲꌅ?????????????????????????????????????????????????????????????????????????
    8·1 answer
  • Uber’s expansion on the innovation front requires strategic planning by senior management. Once this planning has been completed
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!