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vovangra [49]
3 years ago
9

On January 1, 2019, Jannison Inc. acquired 90% of Techron Co. by paying $477,000 cash. There is no active trading market for Tec

hron stock. Techron Co. reported a Common Stock account balance of $140,000 and Retained Earnings of $280,000 at that date. The fair value of Techron Co. was appraised at $530,000. The total annual amortization was $11,000 as a result of this transaction. The subsidiary earned $98,000 in 2019 and $126,000 in 2020 with dividend payments of $42,000 each year. Without regard for this investment, Jannison had income of $308,000 in 2019 and $364,000 in 2020. Prepare a proper presentation of consolidated net income and its allocation for 2019.
Business
1 answer:
shusha [124]3 years ago
8 0

Answer:

Answer is given below.

Explanation:

Economic Unit Concept  

                          2014 2015

Jannison Inc. 308000 364000

Techron Co. 98000 126000

Sub Total 406000 490000

Less : Amortization 11000 11000

Total Net Income 395000 479000

Non Controlling Interest  

= 10 % of Techron Co,  

(after deduction of amortization expense)  

= 10% (98000-11000) 8700  

= 10% (126000-11000)  11500

Consolidated Net income 386300 467500

(after Noncontrolling interest allocation)  

Under Economic unit concept both business are taken as a single business unit, and accordingly incomes of both entities are clubbed to find income of business as whole

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Which of the following is most likely to be considered revenue, according to the Financial Accounting Standards Board’s definiti
sesenic [268]

Answer:

A web streaming company fulfills a 12-month service term paid by customers in advance.

Explanation:

Revenue is recognized from services rendered or goods delivered. It is recognized only when the risk and reward is transferred, further it relates to the normal business of company.

As in the first sentence the company makes scientific devices and it sales an agricultural land, that is sale of fixed asset.

In second case the pharmaceutical company receives donation which is anonymous.

All the things are not revenue for company.

It is only the web streaming company which shall recognize revenue as the services are rendered and revenue shall be recognized related to normal business of company.

8 0
3 years ago
Cost behavior is useful to managers for all the following except
Olenka [21]
if a company is operating at the full production capacity, then to fulfill more demand, the company will have to invest more in the production line.
8 0
3 years ago
What economic goal does the Securities and Exchange Commission (SEC) help the government achieve the most
scoundrel [369]

Answer: promote economic prosperity

Explanation:

7 0
2 years ago
Assume there are two people in a society. Person A is willing to pay $140 to have one unit of a public good produced and Person
Shtirlitz [24]

Answer:

$300

Explanation:

Given:

Society A

Society B

Society A will pay $140 per unit  

Society B will pay $160 per unit  

Commonly pay $140 for two units produced.

Computation:

Society will pay total amount for the public goods = $160 + $140  

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Therefore, $300 Is the total amount paid by society.

7 0
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Chandler Kumar owns two antique stores. One is in an upscale neighborhood, and its merchandise is artfully arranged and priced t
Sladkaya [172]

Answer:

Positioning strategies

Explanation:

In business , positioning strategies refers to the efforts that a company can do  to influence some sort of perception toward their brands.

In the example above, Markup artfully arranged  his products and priced to indicate product rarity in upscale neighborhood.

He did this because for customers with high economic power, presentation of a certain product will create the perception that owning that product indicates high social status. This probably held more value compared to the actual use function of the product itself.

On the other hand, he left his products in open boxes and placed haphazardly on shelves when targeting customers with lower income. He did this because among customers with lower income, presentation tend to matter less compared to the actual function of thier brand.

8 0
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