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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:

You might be interested in
The following is the stockholders' equity section of Harbor Co.'s balance sheet on December 31: Common stock $10 par, 100,000 sh
Murljashka [212]

Answer:

The book value of shares is $10

Explanation:

The balance of shareholders equity is $2,200,000.This comprises of retained earnings of $800,000 and Issued Share Capital of $1,400,000(for 140,000 units of shares)

To ascertain the unit of shares,see below:

45000units= $450,000

15000units reacquired at $150,000

Which also means that $1,100,000 is for 110,000units of shares.

In each of these cases highlighted above share price is $10

for instance:$450,000/45000shares=$10

$150,000/15000=$10 e.t.c

8 0
3 years ago
The more familiar customers are with a brand, the harder their decision-making process will be?
Pepsi [2]

The statement, the more familiar customers are with a brand, the harder their decision-making process will be is false.

When the customers are more familiar with a brand, it is not always necessary that the decision-making process will be harder for them. The customers decision depends more on the economical factors as well.

The various brands does play an important role in influencing the customers decision-making process. Brands enable customers to quickly differentiate one firm or product from another.

Hence, it is not always the case where the customers who are familiar with the brand have hard time making decisions.

To learn more about the decision-making process here:

brainly.com/question/19901674

#SPJ4

6 0
2 years ago
Which is the main reason why IT professionals need to pursue continuing education and self-directed learning?
kirza4 [7]

Answer:

B

Explanation:

5 0
3 years ago
When you are saving money you are: A:gathering B:cutting back C:discounting D:accumulating​
stiv31 [10]

Answer:

accumulating?

Explanation:

3 0
2 years ago
Last month, a Vivian’s Fabrication Department started 82,000 units into production. The department had no beginning work in proc
Dmitry_Shevchenko [17]

Answer:

Unit Materials cost $6.15

Explanation:

Beginning        0

Started 82,000

Ending   (18,100)

Complete and transferred out 63,900

To get equivalent untis we add the transferred out with the equivalent units of Ending inventory

CC 63,900 + 18,100 x 50% = 72,950

<u>Materials 63,900 + 18,100 x 100% = 82,000</u>

Unit material cost:

504,300/82,000 = 6.15

+Ending materials 18,100

3 0
3 years ago
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