A firm might try to increase its market power in order to

Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Tra

ivann1987 [24]

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Net income = $110,000

Dividends paid = $60,000

Common stock owns = 15%

So, we can calculate the income for particular investment by using following method:

Income to be recognized = Dividends paid × Common stock owned

by putting the value, we get

= $60,000 × 15%

= $60,000 × 0.15

= $9,000

Hence, the income to be recognized on this investment is $9,000.

6 0

2 years ago

According to the quantity equation, the price level would change less than proportionately with a rise in the money supply if th

mylen [45]

Answer:

The correct answer is b. either a rise in output or a fall in the rate at which money changes hands.

Explanation:

The quantitative theory of money is an economic theory that aims to explain the causes of inflation, that is, the variations in prices and the value of money in a country.

To explain inflation, the quantitative theory of money relates the money supply to the general price level. The money supply is the amount of money that exists in the economy. It can be estimated since it is the central banks that control the liquidity of the economy.

6 0

2 years ago

What did the lawyer say to the other lawyer?<br> all answers welcome.

In-s [12.5K]

<span>We are both Lawyers.</span>

7 0

2 years ago

Read 2 more answers

Zale wants to determine how his stock portfolio is doing compared to the overall market. What should he do? A. compare his stock

kvv77 [185]

Compare to index like SP500

4 0

3 years ago

Read 2 more answers

Reggie is a self-employed taxpayer who turns 59 years old at the end of the year (2019). In 2019, his net Schedule C income was

yuradex [85]

Answer:

Consider the following calculations and explanation

Explanation:

.a. Reggie sets up a SEP IRA:

He can contribute maximum amount of 25% of his net income, upper limit being $55,000 in 2018 and $54,000 in 2017.

Since his net income is $300,000: 25% of his net income (300000*0.25)=$75,000

Upper limit in 2017=$54,000

In 2017 he can contribute maximum $54,000

In 2018 he can contribute maximum$55,000

.b. . Reggie sets up an individual 401(K):

Annual salary deferral of $18,500 im 2018 and $18,000 in 2017. Since he is above 50 , there will be additional amount of $ 6,000 for him. So he can have annual salary deferral of $24.500 in 2018 and $24,000 in 2017

Contribute additional maximum $55,000 in 2018 and $54,000 in 2017

7 0

2 years ago