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WARRIOR [948]
3 years ago
8

On January 2, Yorkshire Company acquired 40% of the outstanding stock of Fain Company for $600,000. For the year ended December

31, Fain Company earned income of $140,000 and paid dividends of $50,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.
Business
1 answer:
mr Goodwill [35]3 years ago
3 0

Answer: Please refer to Explanation

Explanation:

We shall do the accounting entries as follows,

Purchase of the stock

January 2

DR Investment in Fain Stock $600,000

CR Cash $600,000

The share of Fain income

December 31

DR Investment in Fain Stock $56,000

CR Revenue from Investment (40% * $140,000 income) $56,000

The dividends received from Fain Company.

December 31

DR Cash (40% * $50,000 dividend payout) $20,000

CR Investment in Fain Stock $20,000

If you need any clarification do comment.

Cheers.

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Tanya Fletcher owns undeveloped land (adjusted basis of $80,000 and fair market value of $92,000) on the East Coast. On January
prisoha [69]

Answer:

Following are the solution to the given point:

Explanation:

In point a:

Sum of:

= ($89,000 + $3,000)

= $92,000  

Modified foundation= -$80,000  

A real profit= $12,000  

Gain (boot received) recognised = $3,000  

Tanya's West Coast Changed Base:  

Fair Market  = $89,000  

Posted benefit:

= ($ 12,000- $ 3,000)

=  $ 9,000  

Adjusted Base =$80,000  

In part b:

Realized benefit calculation:  

Sum of =  $92,000

Modified Base =$72,000 + $3,000 = $75,000  

A real profit= $17,000    

gain was accepted = $0  

Changed base of Martin to the West Coast:  

Fair Market = $92,000  

Gain deferred  = ($17,000-$0) = $ 17,000  

Adjusted Base  = $75,000

In point c:

Recognized benefit from Martin:  

Value = $1,20,000  

Base adjusted= $ 75,000  

actual gain = $45,000  

Gain  Recognized= $45,000

In point d:

Tanya has little effect mostly on selling by Lisa of an eastern seaboard ground. There is no supposed selling care among Lauren and Tanya after selling property on the eastern seaboard since they are unrelated parties.

In point e:

sum of = $92,000.

Tanya 's acceptable basis is $80,000 ($89,000-($12,000-$3,000)).

actual benefit = $ 12,000  

gain benefit = $3,000  

Since the trade is deemed a non-taxable trade, $3,000 is recognized of the total $12,000 benefit. Its ground earned is $80,000 adjusted.

5 0
2 years ago
Compared to a country with an MPS of 0.05, a country with an MPS of 0.2 would have to change government expenditures by ________
const2013 [10]

Answer: Four times.

Explanation:

Based on the information given, the government expenditure multiplier in this case goes thus:

K = ∆Y/∆G = 1/1-MPC = 1/MPS

For the first country with a MPS of 0.05, K = 1/MPS = 1/0.05 = 20

For the first country with a MPS of 0.2, K = 1/MPS = 1/0.2 = 5

Therefore, 20/5 = 4.

Therefore, the answer is four times.

8 0
3 years ago
​an automobile manufacturing company has developed an electric car that uses sunlight to charge itself during movement. this new
aalyn [17]
<span>The electric car that uses sunlight to charge itself during movement is a </span>new invention which is a development in the technological component of the general environment of the company. <span>Changes in technological components can be a benefit or a threat to a business. This one is a benefit to the business.</span>
4 0
3 years ago
In a large corporation, shareholders responsibilities include ________.
tankabanditka [31]
~Hello There!~

I'd say it is Electing a board of directors.

Hope This Helps You!
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5 0
3 years ago
Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 21 years Coupon rate: 9 percent Se
kifflom [539]

Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 21 years Coupon rate: 9 percent Semiannual payments Calculate the price of this bond if the YTM is  6% (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):

Answer:

Price of bond = $982.63

Explanation:

<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV). </em>

Value of Bond = PV of interest + PV of RV

The value of bond for Microhard can be worked out as follows:

Step 1  

PV of interest payments

Semi annul interest payment  

= 9% × 1000 × 1/2 = 45

Semi-annual yield = 6%/2 = 3 % per six months

Total period to maturity (in months)

= (2 × 21) = 42 periods

PV of interest =  

45 × (1- (1+0.03)^(-21)/0.03)= 693.6

Step 2  

PV of Redemption Value

= 1000 × (1.03)^(-21×2) =288.95

Price of bond

= 693.6 + 288.95 =982.63

Price of bond = $982.63

4 0
3 years ago
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