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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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Answer:

Net   Cash flow   in year 4   $46,140<u> </u>

Explanation:

Cash flow represent the amount of cash revenue less out of pocket cash expenditures. Non-cash related items are not included.

Year    4                                               cash flow     ;

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Working capital recouped                     4,950

Scrap value                                            6,090    

Tax payable (40%*58500)                      <u>(23400 )</u>

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3 0
3 years ago
Mark accidentally overheard a confidential phone conversation between his boss and the district manager during which they discus
EleoNora [17]

Answer:

-Say nothing to his co-workers since this was a private conversation and he could lose his job if his boss found out he was spreading sensitive company information

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3 years ago
Refers to the use of digital technologies that enable organizations or individuals who are geographically dispersed to collabora
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2 years ago
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Answer:

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--to record wages to employees--

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In the short run, a profit-maximizing monopolistically competitive firm sets it price: above marginal cost. Option C. This is further explained below.

<h3>What is marginal cost?</h3>

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