The way they will record the dividends if they use the fair value method vs. the equity method is A. They will report dividends as income under the fair value method but as a reduction in the investment under the equity method.
<h3>What is a Stock?</h3>
This refers to the shares of a company that denotes a certain ownership percentage for each buyer of the stock.
Hence, we can see that Williford Enterprises has purchased common stock from several companies and has classified them as long-term investments and option A best shows how they would record the dividends.
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Answer:
<h2>A man buys a racehorse for $20,000 and enters it in two races. He plans to sell the horse afterward, hoping to make a profit. If the horse wins both races, its value will jump to $100,000. If it wins one of the races, it will be worth <em>$50,000.</em></h2>
Explanation:
Answer:
Results are below.
Explanation:
Giving the following information:
The semiannual interest of 3.5%.
A) We need to calculate the nominal interest rate:
Nominal interest rate= 0.035/2= 0.0175
B) Real interest rate:
Real interest rate= (1.0175^2) - 1= 0.03531
It compounds interest twice a year. Therefore, is higher
C) Investment= $8,000
We will use the following formula:
FV= PV*(1+i)^n
n= 10
i= 0.175
PV= 8,000
FV= 8,000*(1.0175^10)
FV= $9,515.56
Answer:
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