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den301095 [7]
3 years ago
15

The equity method is used when an investor can't control, but can exercise significant influence over the operating and financia

l policies of the investee. We presume, in the absence of evidence to the contrary, that this is so if:
A. The investor classifies the investment as available-for-sale.
B. The investor classifies the investment as held-to-maturity.
C. The investor owns between 51% or more of the investee's voting shares.
D. The investor owns between 20% and 50% of the investee's voting shares.
Business
1 answer:
IrinaK [193]3 years ago
4 0

Answer:

D. The investor owns between 20% and 50% of the investee's voting shares.

Explanation:

When an investor owns shares of a company providing more than 20% voting rights or above it can, use equity method.

Under such instance the investor can exercise strong influence on the investee but cannot control the activities whether operating or financial in nature.

If the investor holds more than 50% shareholding in investee's common equity, then the investor can control the transactions of the investee, though it can use equity method.

Therefore, correct option is:

D. The investor owns between 20% and 50% of the investee's voting shares.

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Who are risk takers in search of profits
AlekseyPX

Answer:

entrepreneurs

Explanation:

4 0
3 years ago
Jeffreys Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 los
Daniel [21]

Answer:

Computation of cash received from the sale of the equipment:

D. $58,000.

Explanation:

Computation:

Sale of Equipment Account

Equipment account   $240,000

less acc. depreciation  172,000

Net book value           $68,000

less loss on sale            10,000

Cash received            $58,000

Equipment Account

Year 1 balance         $750,000

Year 2 balance           510,000

Sale of equipment  $240,000

Accumulated Depreciation:

Year 1 balance         $500,000

Year 2 balance          328,000

Sale of equipment   $172,000

b) The sale of the equipment caused a loss of $10,000.  The net book value of the equipment is $68,000.  This implies that it was sold for $58,000 ($68,000 - $10,000).  So, the cash received from the sale is $58,000.

7 0
4 years ago
Which of the following sentences use correct punctuation?
EastWind [94]

Answer:

B.

Explanation:

Parenthesis are used to add the other content such as references guidelines, although they are not important but some readers tend to verify the argument so to guide them they content is given in parenthesis.

In example a: The information about the page is given by dash which is incorrect to do so.

In example b: The other information such as reference ( p.27) is given accurately.

In example C: My address is highlight by quoting, and it's not a quote, So, it's incorrect.

4 0
3 years ago
Jensen Co. expects to pay €50,000 in one month for its imports from France. It also expects to receive €200,000 for its exports
Julli [10]

Answer:

-$5,873

Explanation:

For computation of maximum one month loss in dollars first we need to find out the net exposure and maximum one month loss in percentage which is shown below:-

Net exposure = Received amount - Paid amount

= €200,000 - €50,000

= €150,000

Maximum one - month loss in Percentage = Next month percentage - (Alpha × Euro percentage)

= 2% - (1.96 × 2.5%)

= -2.9%

Maximum one - month loss in Dollars = Net exposure × Current spot rate of the euro × Maximum one - month loss in Percentage

= €150,000 × $1.35 × (-0.029)

= -$5,873

5 0
3 years ago
With increased economic progress, cultures across the world seem to be moving toward some universally accepted values and norms.
lawyer [7]

Answer:

The correct answer is letter "E": convergence hypothesis

Explanation:

In Economics, the convergence hypothesis describes how increasing industrialization in different countries could lead to transform the economy to an industrialized world where the <em>same societal patterns, ideologies, behaviors, and customs</em> will be spread which is likely to create a global culture.

7 0
3 years ago
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