Answer:
Polo will report $318,750 as its investment in Stallion at December 31, 20X8
Explanation:
Common stock = $300,000 acquired at 75%
Net income = $40,000
Pay dividends = $10,000
Increase in value of Patent = $50,000
Economic Life = 10
Amortization = $5,000
Therefore, the $ 5000 would be reduced from the net income.
Investments in Polo = $300,000 + [0.75 × (40000 - 10000 - 5000)]
= $300,000+ 0.75(25,000)
= $300,000+ $18,750
= $318,750
Answer:
For 2 years
Explanation:
Financial responsibility is the procedure or the process which is defined as managing the money and also the other similar assets, in a method which is considered as productive and in the best interest of family, business or individual.
So, in order to show the proof of the financial responsibility in the near future, business or individual needs to show the proof for the 2 years because to make the proof comparable with the previous year.
Answer:
Capital Expenditure during the year 40,706
Explanation:
opening assets = 218470
less: Depriciation for the year = (42822)
less: Disposal of assets = (6943)
less: Closin Assets = (209411)
Balancing figure additions = 40706
Answer: (D) Clan culture
Explanation:
The clan culture is one of the type of friendly type corporate environment in an organization and it is also known as collaborative culture. Clan culture is one of the element of corporate clan culture model.
There are many types of advantage of clan culture in an organization are as follows:
- Clear communication
- Increase in company productivity
- Increase in organization growth
According to the question, Jason and the Jill are the owner of the company an they always encourage and also motivate their employees. They also try to increase the job satisfaction among the employees and they try to built the clan culture in the company.
Therefore, Option (D) is correct.
Answer:
Option B, IRR is 14.42%
Explanation:
The IRR is the rate of return that equates the cost of the project to the present value of cash flows receivable from the project in future.
Using an excel approach, the formula formula IRR is given as:
=irr(values)
The values in this case are
-$1300 in year 0
$450 in year 1
$450 in year two
$450 in year 3
$450 in year 4
The irr gives 14.42% as shown in the spreadsheet attached
The cost of the investment of the investment project of $1300 equals the present values of its cash flows at 14.42% rate of return
