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amid [387]
3 years ago
14

On July 1, Year 1, Denver Corp. purchased 3,000 shares of Eagle Co.�s 10,000 outstanding shares of common stock for $20 per shar

e but did not elect the fair value option. On December 15, Year 1, Eagle paid $40,000 in dividends to its common shareholders. Eagle�s net income for the year ended December 31, Year 1, was $120,000, earned evenly throughout the year. In its Year 1 income statement, what amount of income from this investment should Denver report?
$36,000
$18,000
$12,000
$6,000
Business
1 answer:
FrozenT [24]3 years ago
3 0

Answer:

$18,000

Explanation:

On July 1, Year 1

Denver Corp. invested in E company holding:

= (3,000 ÷ 10,000) × 100

= 30% of share

Hence, the period of holding as on December 31, Year 1 is 6 months.

Net income for E co. for the year ended December 31, Year 1 = $120,000

Amount of income from this investment should Denver report:

= $120,000 × 30% × (6/12)

= $18,000

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An investor has $50,000 in cash to put a $5,000 down payment on 10 different homes valued at $50,000 each and will finance the r
scZoUnD [109]

Answer:

d. leverage

Explanation:

Leverage -

It is a type of investment strategy , where the borrowed money is used .

It is the method by which the firm or an organisation is expanded by using the borrowed money as the capital and funding , is referred to as leverage  .

Hence , from the given scenario of the question,

The person uses borrowed money to increase the potential return of an investment .

Hence , from the question,

The correct term is leverage .

3 0
3 years ago
Which of the following costs is a mixed cost? a. straight-line depreciation on factory equipment b. electricity costs of $3 per
Ksenya-84 [330]

Answer:

correct option is d. rental costs of $10,000 per month plus $0.30 per machine hour of use

Explanation:

solution

The combined cost is one in which the factor is variable and constant.

Sometimes, even the total cost is difficult to separate.

The chosen option also includes a fixed cost that costs $ 5,000 per month.

The cost per hour of the machine increases  0.30 per hour.

This is variable because the entire machine depends on the number of hours used.

The other three are completely variable, such as salary, and are not deductible or cost of electricity.

3 0
4 years ago
Eichholtz Company uses 10,000 units of a part in its production process. The costs to make a part are: direct materials, $12; di
slava [35]

Answer:

c) $40,000 to buy the part

Explanation:

For computing the better off first we have to compute the per unit cost which is shown below:

= Direct material per unit + Direct labor per unit + variable overhead + applied variable overhead

= $12 + $25 + $13 + $30 × 30%

= $12 + $25 + $13 + $9

= $59

The difference cost would be

= $59 - $55

= $4

Now the better off would be

= Number of units × difference cost

= 10,000 units × $4

= $40,000

3 0
3 years ago
In which statement(s) is "demand" used correctly?
bixtya [17]

Answer:

its Two

Explanation:

6 0
3 years ago
determine the net income of a company for which the following information is available for the month of july. employee salaries
djyliett [7]

The net income of the company is $193,000

What is the net of the company?

The net income of the company is the total consulting revenue minus the salaries expense, interest expense, and rent expense, in other words, revenue minus total costs of running the company

net income=consulting revenue-rent expense-interest expense-salaries expense

consulting revenue=412,000

rent expense=23,000

interest expense=13,000

salaries expense=183,000

net income=412,000-23,000-13,000-183,000

net income=$193,000

Find out more about income statements on:brainly.com/question/24498019

#SPJ1

5 0
2 years ago
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