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marta [7]
3 years ago
6

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

ce reported net income of $110,000 for 2018 and paid dividends of $60,000 on October 1, 2018. How much income should Gaw recognize on this investment in 2018?
a) $16,500.
b) $9,000.
c) $25,500.
d) $7,500.
e) $50,000.
Business
1 answer:
Marizza181 [45]3 years ago
3 0

Answer:

It is $9,000 (B)

Explanation:

Total paid dividends paid = $60,000

Return on Investment = $60,000 *15%

                                    =$9,000.

Gaw Company investment in Trace Corporation will be treated as Investment Assets. In its book ,it can only recognize its share of dividend paid as return on investment.

Gaw Company cannot recognize its share of entire net income of Trace because it doesn't have controlling interest (i.e subsidiary) in the company neither does it have significant influence (i.e associate).

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Kendall is __________ because he feels a strong sense of responsibility for his work and regularly does more than his job requir
mezya [45]

Answer:

Explanation:

In this statement, Kendall is an active follower because he pushes himself in his work and tries to provide as much value to his employer as possible. This includes giving ideas, perfecting his work, and even going above and beyond by doing tasks that are not part of the job description to simply help out. On the other hand, Cora is a conformist because she follows orders exactly as they are given regardless of whether they are unethical or may cause problems with the other co-workers.

5 0
2 years ago
Calcular el valor futuro de $2,500 que se ahorran al final de cada mes por un periodo de 4 años con una tasa de interés del 9% a
amm1812

Answer:

VF= $143.801,78

Explanation:

Dada la siguiente información:

Deposito mensual (A)= $2.500

Cantidad de periodos (n)= 4*12= 48 meses

Interes mensual (i)= 0,09/12= 0,0075

<u>Para calcular el valor futuro (VF), debemos usar la siguiente formula:</u>

VF= {A*[(1+i)^n-1]}/i

VF= {2.500*[(1,0075^48) - 1]} / 0,0075

VF= $143.801,78

5 0
3 years ago
The property tax on a rental house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charge
MAXImum [283]

Answer:

Both will bear

Explanation:

Both Mr. Janey and Ms. lacey will bear the incidence of the property tax increase because Mr. Janey has only shifted $540 ( $45 x 12) of the total $1200 by increasing the monthly rent charge of his tenant Ms. lacey by $45/month. Mr. Janey will pay only $660 of $1200 increase in tax and remaining will be paid by Mr Lacey.

6 0
3 years ago
Which of the following is not correct?a. If the inflation rate exceeds the nominal interest rate, then the purchasing power of a
lilavasa [31]

Answer:

The options which is NOT correct is C.

Purchasing power does not increase with inrease in the rate of inflation. There is an inverse relationship between inflation and purchasing power of money.

Explanation:

Inflation refers to the overall increase in prices of goods and services and the erosion of the power of the currency to purchase those goods and services. In otherwords, when inflation happens, one requires more dollar bills to purchase same unit of goods or services.

Deflation is the opposite of inflation. It refers to the decrease in the prices of goods and services and is usually accompained by an increase in the purchasing power of the currency.

Nominal interest rate simply put is the interest payable on a loan without considering processing fees, compounding interest payable and the erosion of the value of such money.

Cheers!

             

4 0
2 years ago
What information should a resume provide?
Vilka [71]
In a typical resume, you will find first, your name and contact information. after that, you will be putting your educational background meaning what high school and university you graduated from. This will be followed by your work experience meaning all the jobs that you have been in whether part time or full time. next, you will be putting all of the organizations that you join whether they be during your high school year or college year. After that, you will list down some of the research papers you made. Lastly, you will be listing down some of your skills and your best personality traits
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