1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bixtya [17]
3 years ago
6

On July 1, 20X4, Pillow Corp. obtained significant influence over Sleep Co. through the purchase of 3,000 shares of Sleep's 10,0

00 outstanding shares of common stock for $20 per share. On December 15, 20X4, Sleep paid $40,000 in dividends to its common stockholders. Sleep's net income for the year ended December 31, 20X4, was $120,000, earned evenly throughout the year. In its 20X4 income statement, what amount of income from this investment should Pillow report
Business
1 answer:
puteri [66]3 years ago
3 0

Answer: $18,000

Explanation:

Income from investment is the percentage of the acquired company's income that the company that acquired it will report as their own based on their percentage of ownership.

By purchasing 3,000 shares out of 10,000, Pillow Corp owns;

= 3,000 / 10,000

= 30% of Sleep Co.

These shares were bough on July 1 so the relevant period will be half a year.

At the end of the year, Pillow Corp will report 30% of half of Sleep Co. income as income from investment for the year.

= 30% * 120,000 * 0.5

= $18,000

You might be interested in
In competitive markets, which of the following is not correct? Group of answer choices No individual buyer can influence the mar
julia-pushkina [17]

Answer:

Some sellers can set prices

Explanation:

Characteristics of competitive firms:

1. All sellers are price takers. No seller can influence market price.

2. All buyers are price takers

3. Forces of demand and supply determine market price.

4. All products are homogenous

5. There are no barriers to entry or exist of firms

6. There is perfect information

3 0
3 years ago
1. Why do you think savings, scholarships, and state aid are good “preparation"
valentina_108 [34]

Savings, scholarships and state aid are good preparations steps for one to take before applying for federal financial aid because They help one to

save enough money to be able to pay for college and also prevent serious debt after graduating.

Financial intelligence is a vital and indispensable virtue one must cultivate,just like the question stated, before going high as to seek federal aid,it is imperative to start from savings, scholarships and state aid because those can help you after graduating and not put you through serious debt after graduating.

If you must apply for federal aid,that implies that you have tried other better, easier means and all proved abortive and the only option that is left is the federal aid.

And while on federal aid,plans must be made on the means to pay back all sorts of financial issues so that once graduated,the financial burden will be minimal.

4 0
2 years ago
Intelligent Tool Corp. is planning to set up a production plant abroad. It has selected five potential countries based on their
Alex_Xolod [135]

Answer:

e. Country B, where education is well-developed and social stratification is lacking.

Explanation:

Country B will be the best option because the population is well-developed in terms of education, so there will be availability of skilled labour for the production plant.

Also lack of social stratification means there is no well-developed social stratification into upper, middle, and lower classes. Success will be due to individual achievement, so the people will be motivated to work hard and exploit the opportunity of growing in the new production plant.

5 0
3 years ago
Leh Inc. recently borrowed $275,000 from its bank at a simple interest rate of 9 percent. The loan is for nine months and, accor
Andreyy89

Answer:

Monthly payment =$32,618.05

Explanation:

<em>To arrive at the monthly installment, we would calculate the total interest due on the loan for nine months, add it to the principal and then divided the sum by 9 months</em>

<em>The monthly installment</em>

= (Principal + total interest for 9 months)/ number of months

<em>Interest for 9 months </em>

= 9%× 9/12 × 275,000

= $18,562.5

<em>Monthly installment</em>

= (275,000 + $18,562.5)/9

=32,618.05 per month

3 0
3 years ago
The Morris Corporation has $300,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are
Ad libitum [116K]

Answer: 1.41

Explanation:

Given that,

Debt outstanding = $300,000

interest rate = 8% annually

annual sales = $1.5 million

average tax rate = 40%

net profit margin on sales = 4%

interest amount = 300,000 × 0.08

                          = $24,000

net profit = 4% of 1.5 million

                = $6,000

Profit before tax = \frac{6,000}{0.60}

                           = $10,000

earning before interest and tax = profit before tax + interest

                                                    = $10,000 + $24,000

                                                    = $34,000

TIE ratio = \frac{EBIT}{Interest}

              = \frac{34,000}{24,000}

              = 1.41

8 0
3 years ago
Other questions:
  • Harmony is currently producing 100 units of a necessary component part by incurring $60,000 in direct materials, $12,500 in dire
    13·1 answer
  • What does intelligence mean? do you accept the use of the word in "business intelligence software tools," or do you think the us
    12·1 answer
  • Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recen
    13·1 answer
  • The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports
    10·1 answer
  • Gordon Chemicals Company acquires a delivery truck at a cost of $35,400 on January 1, 2017. The truck is expected to have a salv
    5·1 answer
  • Charles heads the human resource department at technology development company Schultz Inc. There, he monitors trends of the labo
    7·1 answer
  • Chris donated securities with a cost of $20,000 and a fair market value of $50,000 to a local civic theater. Chris's tax deducti
    6·1 answer
  • During 2020, Bayside Inc. has 9% cumulative non-participating preferred stocks with a total par value of $300,000 and common sto
    5·1 answer
  • Assume the firm’s dividend payment is $0.18, and that the required rate of return for the firm’s industry is 10.1%. What is the
    7·1 answer
  • How does the service enterprise contribute to the economic growth of the country?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!