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Butoxors [25]
3 years ago
7

Jones Company possesses a 25 percent interest in the outstanding voting shares of Sandridge Company. Under what circumstances mi

ght Jones decide that the equity method would not be appropriate to account for this investment?
Business
1 answer:
coldgirl [10]3 years ago
8 0

Answer:

Jones may decide that the equity method would not be appropriate to account for the investment when Jones Company does not have significant influences over the management/operation of Sandridge Company.

Although an investors holding from 25% of investee is very much likely to have significant influences on the investee, this may not be true all over the times. For Jones, to prove that it does not have significant influences over Sandridge, there may be some following evidences:

+ Jones and Sandridge sign an agreement that Jones surrenders  significant rights as a shareholder;

+ There is/are investor(s)/group(s) of investors who has more voting right than Jones and whose visionary/mission for Sandridge is opposite to Jones's.

+ Sandridge tries to reject Jones' influences on its management by seeking lawsuit or by successfully prevent representatives from Jones on its Board of Directors.

Explanation:

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Hiromi congratulated her staff when the team received an industry award for their project, and also sent a companywide e-mail an
olga_2 [115]

Answer:

Reward power

Explanation:

Hiromi used reward power here the reward is "intangible reward". She praised and recognized the achievement of her staff team so the reward is intangible.

7 0
3 years ago
John and Joan are married and want to make cash gifts to their children (2), their children's spouses (2), and their grandchildr
IgorLugansk [536]

The answer is $0.00 (third option).

Explanation:

During the year of 2018, the annual exclusion of both federal and state tax to cash gifts was up to $15,000 per individual. <em>Annual exclusion</em> means that there's up to a certain amount of money that can be gifted without being taxable. In this case, John and Joan's cash gift falls within the limit.

When couples gift money to their family members, the limit is precisely $15,000 per relative, individually; meaning the can gift up to a total of $60,000 without being subject to gift tax.

3 0
3 years ago
Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevan
kipiarov [429]

Answer:

The Journal entry is as follows:

Construction in progress A/c   Dr. $950,000

Cost of construction A/c           Dr. $1,600,000

To revenue from long term contracts                       $2,550,000

(To record the revenue in 2018)

Workings:

Cost of construction:

= cost of 2017 + cost of 2018

= $1,100,000 + $500,000

= $1,600,000

4 0
3 years ago
If mistakes or fraudulent reporting behavior are discovered, auditors require the company to correct all significant information
stepladder [879]

Answer:

The correct answer is True.

Explanation:

In the context of the audit of financial statements, fraud consists of recording intentional errors in the financial statements. The two main fraud categories are: fraudulent financial reports and asset misappropriation.

Fraudulent financial reports are characterized by containing errors or intentional omissions in the amounts with the intention of deceiving users. Most cases of fraudulent financial reports overestimate assets and income or omit financial liabilities and expenses to show higher income.

6 0
3 years ago
Clauses in labor agreements that provide for quarterly cost-of-living adjustments in wages based on changes in the consumer pric
IrinaVladis [17]

Answer:

c. escalator clauses

Explanation:

Based on the information provided within the question it can be said that the term being described is called an escalator clause. Like mentioned in the question this term refers to a clause within a contract that allows for an increase in in the price or wage stated in the contract but only under the specific conditions stated.

8 0
3 years ago
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