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vladimir2022 [97]
3 years ago
15

Baker Company owns 15% of the common stock of Charlie Corporation and used the fair-value method to account for this investment.

Charlie reported net income of $120,000 for 2021 and paid dividends of $70,000 on October 1, 2021. How much income should Baker recognize on this investment in 2021
Business
1 answer:
solniwko [45]3 years ago
3 0

Answer:

the income that recognized on this investment is $10,500

Explanation:

The computation of the income recognized on this investment for the year 2021 is shown below"

= dividend × share of ownership

while

The dividend is $70,000

And, the share of ownership is 15%

Now place these values to the above formula

= $70,000 × 15%

= $10,500

hence, the income that recognized on this investment is $10,500

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The acid-test ratio Group of answer choices is a quick calculation of an approximation of the current ratio. does not include al
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Answer:

does not include inventory as part of the numerator

Explanation:

The acid test ratio is somewhat similar to the current ratio. Both ratios are called liquidity ratio in which the short term assets are converted into cash to pay its short term liabilities. But the only difference in these two is

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While on the other hand, the acid test ratio or quick ratio include quick asset and current liabilities

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3 years ago
Why are foreign mnes like ups seeking to invest in india?
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East Asian Imports, Inc. issued 15,000 shares of stock at a stated value of $8 per share. The total issue of stock sold for $15
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Answer:

Dr Cr

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Common Stock $120,000

(15000 shares × Stated value $8)

Paid-In Capital in Excess of Stated $105,000

Value - Common

($225,000 - $120,000)

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