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
Which of the following strategic foreign facilities is set up in a location with an abundance of advanced suppliers, competitors
katen-ka-za [31]

Answer:

b. Server factory

Explanation:

Server factory is setup in a location possessing advanced suppliers, competitors and research and knowledge centers to provide proper knowledge regarding any thing that is new.

3 0
3 years ago
In pioneer​ ville, the price elasticity of demand for bus rides is 0.5. when the price of a bus ticket rises by 5​ percent, ____
lianna [129]
The quantity of bus rides demanded decreases by 2.5 percent. Hope this helps. :)
4 0
3 years ago
describe at least one global Trend that you think offer a business opportunity in the global Marketplace
Ivan
One global trend that offer  business opportunity in the global market place today is THE RECONFIGURATION OF GLOBAL POWER RELATIONSHIPS. Different countries of the world are in good relationship with one another today more than ever before. This creates opportunities for trade among these countries and give companies opportunities to expand their businesses to other countries of the world.
7 0
3 years ago
A Municipal Finance Professional (MFP) lives in State A. The MFP gives $200 to the election campaign of a personal friend who is
Darya [45]

Answer:

B The payment will not result in the employing firm being banned from doing municipal securities business with State B because it was made based on a personal relationship.

Explanation:

The rule of de minimis applies to persons making donations to candidates vying for elective positions.  $250 de minimis is applicable to a person who will vote for a candidate in an election.  If a person will not vote for the candidate, the de minimis is $150.

In this case, the MFP will not be voting for the candidate.  She is allowed to donate only $150.  Any excess will be refunded.  However, since the MFP is making the donation on his personal capacity, the firm as a separate entity will not be penalized for what the MFP does with her money.  It is likely that the firm does not even do contracts with the municipality.  However, they are not based in the same area.

8 0
3 years ago
At the beginning of 2017, Miyazaki Company's Accounts Receivable balance was $105,000, and the balance in Allowance for Doubtful
madam [21]

Answer:

Miyazaki Company

a. Analysis of transactions:

Sales in 2017 = $787,500

Credit Sales = $630,000 (80% of $787,500)

Total collections on account = $502,500

Uncollectibles written off =   $3,000

Unpaid balance for the year = $229,500 ($105,000 + $124,500)

b. a) Bad Debt Expense = $18,900

   b) Bad Debt Expense = $14,820

c. Net Realizable Value of Accounts Receivable on December 31:

                                                             a)                      b)

Unpaid balance for the year       $229,500      $229,500

Allowance for doubtful accounts    (18,900)          (14,820)

Net Realizable Value =                $210,600        $214,680

d. The recognition of bad debts expense does not have any direct effect on the net realizable value.  It is the Allowance for doubtful accounts that has a negative effect on the net realizable value.

The write-off of accounts reduces the net realizable value by $3,000.

Explanation:

a) Data and Calculations:

Beginning balances:

Accounts receivable = $105,000

Allowance for Doubtful Accounts = $1,950

Sales in 2017 = $787,500

Credit Sales = $630,000 (80% of $787,500)

Total collections on account = $502,500

Uncollectibles written off =   $3,000

Unpaid balance for the year = $229,500 ($105,000 + $124,500)

Bad Debts Expense = $18,900 ($630,000 * 3%)

Allowance for Uncollectibles = $13,770 ($229,500 * 6%)

a) Allowance for Doubtful Accounts:

Account Titles               Debit        Credit

Beginning balance                        $1,950

Accounts receivable  $3,000

Bad Debts Expense                      18,900

Balance                       17,850

b) Allowance for Doubtful Accounts:

Account Titles               Debit        Credit

Beginning balance                        $1,950

Accounts receivable  $3,000

Bad Debts Expense                      14,820

Balance                       13,770

6 0
3 years ago
Other questions:
  • Jennifer's pass-through business has total qualified business income of $100,000 and combined REIT dividends/PTP income of $20,0
    10·1 answer
  • What type of college can you obtain a Bachelor of Arts or Bachelor of Sciences degree (BA/BS)?
    11·2 answers
  • The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 40 $ 10
    9·1 answer
  • How many people can fit into the pentagon, which was once the largest office building in the world? assume that everybody must b
    12·2 answers
  • Bailey Company uses a periodic inventory system and its inventory records contain the following information: Units Total Cost Be
    6·1 answer
  • wendy is a college student in her sophomore year. She is single with no kids, and has her education paid for by schlorship
    9·1 answer
  • Suppose that, in a competitive market without government regulations the equilibrium price of gasoline is $3.00 per gallon.
    6·1 answer
  • The debt-to-income (DTI) ratio of a borrower is used to compare to the borrower's gross monthly income.
    10·2 answers
  • Which term refers to the interest the Federal Reserve Bank (Fed) charges banks for loans? open‑market sale fractional banking re
    6·1 answer
  • A firm can produce 1,000 bushels of wheat per year with two workers or 1,300 bushels of wheat per year with four workers. The ma
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!