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notka56 [123]
3 years ago
13

Under the equity method, the Stock Investments account is increased when the Select one: a. investee company reports net income,

and when the investee company pays a dividend. b. investee company pays a dividend. c. investee company reports net income. d. stock investment is sold at a loss. e. stock investment is sold at a gain.
Business
2 answers:
Katena32 [7]3 years ago
5 0

Answer:

The answer is C) Investee company reports net income

Explanation:

The equity method is an accounting standard used by a company to record the profits that accrue from its investment in another company.

With the equity method of accounting, the investor company reports the revenue earned by the other company on its income statement, in an amount proportional to the percentage of its equity investment in the other company.

The equity accounting method seeks to reflect any subsequent changes in the value of the investee business in this investment account.

For example, if the investee makes a profit, the Stock Investments account is increased in value and the investor reflects its share of the increase in the carrying value shown on its investment account.

Net income of the investee company increases the investor's asset value on its balance sheet, while the investee's loss or dividend payout decreases it.

dedylja [7]3 years ago
4 0

Answer:

c. investee company reports net income.

Explanation:

The equity method refers to the technique that is employed to value the investment of a company in another company, or record the profits earned through the investment in an investee company when the investor company holds a significant influence over the investee company.

A 20-50% ownership in a company is usually used as a threshold for a significant influence.

When an investee company reports net income, this will to an increase in the asset value of the investor in the balance sheet. But, the investee company reports a loss or pays dividend, it will decrease the asset value.

Therefore, under the equity method, the Stock Investments account is increased when investee company reports net income.

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What will be the resulting change in equilibrium of the chocolate bar market
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Equilibrium price will increase and quantity will decrease will be the resulting change in the equilibrium of the chocolate bar market.

The equilibrium charge is the rate at which the amount demanded equals the amount supplied. It's far decided through the intersection of the demand and deliver curves. A surplus exists if the amount of an excellent or carrier provided exceeds the amount demanded on the contemporary charge; it causes downward strain on the charge.

Equilibrium is the nation wherein market supply calls for balance every other, and as a result, costs come to be strong. Typically, an over-supply of goods or services causes expenses to move down, which results in a higher call for—while an underneath-deliver or shortage causes fees to head up resulting in less demand.

Upward shifts inside the supply and demand curves have an effect on the equilibrium rate and amount. If the deliver curve shifts upward, meaning deliver decreases however demand holds constant, the equilibrium rate will increase but the quantity falls.

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Question #1
diamong [38]
Veterinary care. Due to others being things or objects.
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3 years ago
Charco purchased a franchise from Burger Master on January 1, 2021, for $240,000. The franchise agreement allows Charco to sell
denis-greek [22]

Answer:

$40,000.

Explanation:

Given that Charco purchased a franchise from Burger Master on January 1, 2021, for $240,000

Useful life of Franchise = 6 years

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Yearly amortization expense = cost/useful life

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The amortization expense for the year ended December 31, 2021 is $40,000. This is the yearly charge to p/l for the Franchise.

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Suppose Charles and Dina are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix
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Answer and Explanation:

As per the data given in the question,

a) Dominant strategy is that strategy in which a player chooses strategy irrespective of the strategy which other player has already chosen.

For Charles, If Dina chooses right he will choose right because payoff is higher (6 > 3) but if Dina chooses left he will choose left because payoff is

is higher (7>6) So, he doesn't have any strategy.

For Dina, he will choose right because it gives highest payoff whether Charles choose right or left.

The dominant strategy is for Dina to choose right.

b)

The outcome matching the unique Nash equilibrium in this game is :

Nash equilibrium is that in which both players will chose after keeping in mind the other players' strategy.

Here equilibrium is :

Charles chooses right(while Dina chooses Right) and Dina chooses right (while Janet chooses right).

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