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Lana71 [14]
3 years ago
6

On January 2, 2020, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income

for the years ended December 31, 2020, and December 31, 2021, were $10,000 and $50,000, respectively. During 2020, Ranger declared and paid a dividend of $60,000. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2021 income statement as income from this investment
Business
1 answer:
nydimaria [60]3 years ago
6 0

Answer: $7200

Explanation:

From the question, we are informed that On January 2, 2020, Howdy Doody Corporation bought 12% of Ranger Corporation's common stock for $50,000.

We are further told that during 2020, Ranger declared and paid a dividend of $60,000 and that on December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000.

The amount that Howdy Doody show in the 2021 income statement as income from this investment will be:

= $60,000 × 12%

= $60,000 × 0.12

= $7,200

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Maxim Corp. has provided the following information about one of its products: Date Transaction Number of Units Cost per Unit 1/1
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Answer:

Cost of goods sold as per average cost method = $92,458.5

Explanation:

As for the information provided as follows:

Opening Inventory             265 units     @         $153 each      = $40,545

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7 0
3 years ago
1. The car dealer is offering a promotion on a new that the buyer pays zero interest over 72 months. The monthly payment is $350
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Answer:

selling price of this car is $22700  

Explanation:

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zero interest = 72 months

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market interest rate = 3.5% per year = 0.2917 % per month

time = 6 year = 72 months

solution

we get here present value of annuity that is

present value  annuity  = ( 0.2917 % per month , 72 months )

present value  annuity  =  64.8568

so here selling price of car is

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selling price = $350 × 64.8568

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