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
Flauer [41]
4 years ago
10

Gunter Company acquires a 25% interest in Hunter Company. The fair value of Hunter's inventory exceeds its book value by $40,000

. During the subsequent year, the inventory is sold. As a result of the sale of inventory, investment revenue would:
Business
1 answer:
olga2289 [7]4 years ago
4 0

Answer:

Increase

Explanation:

Note: <u>The given answer is based upon the assumption that the inventory is sold at fair market value</u>.

In the given case, Hunter company would be termed as an "associate" since the quantum of investment of Gunter in Hunter is more than 20% but less than 50%.

Profits earned by Hunter also belong to the Hunter company in proportion to the percentage of investment held, which would comprise of it's cost of control or added to it's own income as per the case.

In the given case, the difference between fair value and book value reflects profit. Gunter's share in such profits shall be added to it's investment revenue which would increase it's investment revenue.

You might be interested in
In the context of Internet marketing, a _____ is a carefully selected group of consumers who agree to participate in an ongoing
Iteru [2.4K]

Answer: web community

Explanation:

Web community is also called an internet community, it is a virtual community whose members interact with each other primarily through the Internet.

7 0
4 years ago
Two different manufacturing processes are being considered for making a new product. The first process is less​ capital-intensiv
NeTakaya

Answer:

Hello your question is incomplete below is the complete question

Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with fixed costs of only $49,700 per year and variable costs of $740 per unit. The second process has fixed costs of $391,000 but variable costs of only $160 per unit. a. What is the break-even quantity, beyond which the second process becomes more attractive than the first? the volume at which the second process becomes more attractive is ..... units

answer :  At ≥ 589 units the second process becomes more attractive

Explanation:

A) Determine the breakeven quantity that makes the second process more attractive

the second process has a higher fixed cost of $391000

x = volume of sales that makes process 1 as profitable as process 2

sales = fixed cost + Total variable cost

profit = (( selling price ) * X ) - (variable cost * X ) - fixed cost

<em>Assuming the profit made from process 1 = process 2 </em>

((selling price * X ) - ( variable cost of process 1 * X ) - fixed cost of process 1 =((selling price * X ) - ( variable cost of process 2 * X ) - fixed cost of process 2

hence ;

x = ( fixed cost of process 2 - fixed cost of process 1  ) / ((variable cost of process 1) - (variable cost of process 2 ))

   = ( 391000 - 49700 ) / ( 740 - 160 )

   = 588.44 units ≈ 588 units ( both process will yield same profitability

At ≥ 589 units the second process becomes more attractive

5 0
3 years ago
PA12.
Elan Coil [88]

Answer:

\left[\begin{array}{cccc}$unit sale&100000&90000&80000\\$sales revenue&3500000&3150000&2800000\\$COGS&&&\\$Material&900000&810000&720000\\$Labor&1000000&900000&800000\\$VMO&250000&225000&200000\\$FMO&80000&80000&80000\\$total&2230000&2015000&1800000\\$gross profit&1270000&1135000&1000000\\$V S and A&100000&90000&80000\\$F S and A&950000&950000&950000\\$operating income&220000&95000&-30000\\$tax expense&66000&28500&\\$net income&154000&66500&-30000\\\end{array}\right]

Explanation:

<em></em>

<em>We will cross-multiply the variables concept like sales revenues materials, labor and other</em>

I.G

<em>sales revenues for 90,000:</em>

3,500,000 / 100,000 x 90,000 = 3,150,000

<em>for 80,000:</em>

3,500,000 / 100,000 x 80,000 = 2,800,000

<em></em>

The fixed will remain at the same value between the relevant range so we do not change them.

For the tax expense  we will have to check which is the rate

for 220,000 operating income the tax expense is 66,000

we can solve for rate: 66,000/220,000 = 0.3 = <em>30%</em>

Now we will determinate the tax expense with that rate.

<em>NOTE</em> attached missing information

6 0
3 years ago
Mark, an employee, belongs to the marketing department in an organization. However, he often interacts with people in all other
posledela

Answer:

<u>Relational </u>

Explanation:

Relational power refers to the ability of an individual to form and maintain good relations and alliances with the people around, which benefit in the performance of tasks and operations and also serve organizational interest.

Forming relations a rare ability and not all individuals possess it. Those who do, are able to coordinate with others more effectively and this raises efficiency in an individuals performance.

In the given case, Mark demonstrates great ability of forming bonds and healthy relations with the people around which isn't merely restricted to his own departmental employees and thus he is able to get his job done more effectively. This depicts "relational power" of Mark.

8 0
3 years ago
Concord Corporation applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job No. 130, the o
sashaice [31]

Answer:

the amount of direct materials charged to Job 130 is $9,250.

Explanation:

Calculation of direct materials charged to Job 130

Work In Process Inventory             $25,000

<em>Less</em> Manufacturing Overhead       ($7,000)

<em>Less</em> Labor ($7,000 × 100 /80)        ($8,750)

Direct materials charged                  $9,250

4 0
4 years ago
Other questions:
  • Cups of coffee and donuts are complements. assume both have elastic demand. suppose exceptionally good weather increases the har
    10·1 answer
  • The following table contains statements that provide some analysis of policies that address globalization. Categorize each of th
    7·1 answer
  • The Pax Romana refers to a two-hundred-year era of peace and prosperity initiated under the reign of a. Julius Caesar. b. August
    12·1 answer
  • Which of the following statement is correct? A.A change in demand is a movement along the demand curse, and a change in the quan
    7·1 answer
  • Using general equilibrium​ analysis, and taking into account feedback​ effects, analyze the​ following: The likely effects of ou
    6·2 answers
  • a cashier ask for your help as a customer/member wants to make return one day beyond the return window
    11·1 answer
  • Bonds ________ and stocks ________.
    14·1 answer
  • if your in highschool, 17 and in 4 months turn 18, what is the best plan to get your credit up in order to be eligible to rent a
    11·1 answer
  • Which of the following is a disadvantage of bounce-back coupons?
    7·1 answer
  • The Tangier Company is considering eliminating the following product line: Product AXP Sales $ 49,000 Less variable costs: Raw m
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!