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
olasank [31]
3 years ago
10

Grant, Inc., acquired 30% of South Co.’s voting stock for $200,000 on January 2, Year 1, and did not elect the fair value option

. The price equaled the carrying amount and the fair value of the interest purchased in South’s net assets. Grant’s 30% interest in South gave Grant the ability to exercise significant influence over South’s operating and financial policies. During Year 1, South earned $80,000 and paid dividends of $50,000. South reported earnings of $100,000 for the 6 months ended June 30, Year 2, and $200,000 for the year ended December 31, Year 2. On July 1, Year 2, Grant sold half of its stock in South for $150,000 cash. South paid dividends of $60,000 on October 1, Year 2.
In its Year 2 income statement, what amount should Grant report as gain from the sale of half of its investment?
A. $30,500
B. $45,500
C. $35,000
D. $24,500
Business
1 answer:
shepuryov [24]3 years ago
6 0

Answer:

A. $30,500

Explanation:

As it did not elect fair value it choose for equity method.

We icnrease when income is delcare and decrease whn cash payment are distribute considering our percentage of participation.

200,000  beginning investment

+ 80,000 x  30% income = +24,000

- 50,000  x  30% dividends - 15,000

<u>+100,000 </u>x 30% income + 30,000

239,000

Half this investment is  119,500

amount received          150,000

gain n sale:                   30,500

You might be interested in
1. Which of the following best explains why zoos are not affected by the threats of new entrants?
stiks02 [169]

1. Starting a zoo has a high entry cost.

2. Value chain.

3. Other firm can neutralize the advantage by cutting prices to the same level.

4. Using only trees and grasses that are naturally pest resistant.

5. Calculate inputs and outputs.

6. Competitive strategy.

7. Rivalry.

8. Porter's five forces model.

9. Strawberry growers following an unexpected frost.

10. Purchasing books from a publishing house.

7 0
3 years ago
A process in which a third party reviews a case made by two sides of a negotiation is called ________.
kipiarov [429]
The third party is called a mediator 
3 0
3 years ago
Read 2 more answers
The market price in a perfectly competitive market is $11, and 1,250 units are bought and sold. Assume the market becomes monopo
UNO [17]

When the price of a commodity is $11, where 1250 units are being bought and sold in a perfectly competitive market, the market price of the commodity will increase from its original price if the market is monopolized.

<h3>What is a perfectly competitive market?</h3>

In a market where there are less to zero restrictions for entry and exit of buyers and sellers in the market dealing in similar commodities, then such a market is known as a perfectly competitive market.

There is no pricing power in the hands of the buyers and sellers in the market, as there is no minimum or maximum limit on the number of sellers in the market, so the supply is not restricted in such a market.

Hence, it can be concluded that market prices are stable in a perfectly competitive market, and it generally increases in a monopolistic market.

Learn more about a perfectly competitive market here:

brainly.com/question/13961518

#SPJ1

5 0
2 years ago
Omar is setting up his company in quickbooks and selects the accrual basis of accounting. how will his business record income an
algol [13]

Omar is setting up his company in QuickBooks and selects the accrual basis of accounting. income is recorded when sales are made; expenses are recorded when incurred while his business record income and expenses.

Accrual accounting is a method of accounting in which revenue or expense is recognized when a transaction occurs, rather than when payment is made. This method follows the matching principle that income and expenses should be recorded in the same period.

Basic knowledge of debits and credits and what goes on behind the scenes. To use a QuickBooks backup file, you must restore it first. All commands accessible from the home page can also be found in the menu bar.

Learn more about QuickBooks at

brainly.com/question/24441347

#SPJ4

4 0
1 year ago
What are the two key questions for an operations manager in the inspection​ process? A. How to​ inspect? What to​ inspect? B. Wh
Pani-rosa [81]

Answer: Option D: What to inspect? Where to inspect? are the two key questions operated in the inspection​ process.

Explanation:

For the best output results, the products of all the firms need a check of quality control before the process of the sale. If it is not scrutinized properly, then the entire Manufacture defects can lodge into the hands of Operations Manager. For the best result, The manager needs to decide on what purpose of quality check, the inspection is required and secondly, from which weaker part of the production cycle, did He should inspect by comparing the standard of the quality with the products of other firms.

The two key questions of what and where to inspect are always inspected with the parallel effects in which all the comparisons can be noted and achieve the inference of solution. The inference of solution will chase the defective point of the product and makes them very strong and reduces the problem of cycle flow of work allotted to the Inspection process operation.

5 0
3 years ago
Other questions:
  • Were taxes are recorded on the income and expense statement ​
    12·1 answer
  • WACKO Ltd. has $30 million in debt, equity of $55 million, an after-tax cost of debt of 6 percent, a cost of equity of 9 percent
    14·1 answer
  • Matt and Patricia are husband and wife and live in Oregon. In 2010 and using her funds, Patricia purchased a residence for $400,
    13·1 answer
  • A manufacturer of tiling grout has supplied the following data:
    10·1 answer
  • Katsu Corp. distributes property to its shareholders as part of a complete liquidation. The fair market value of the property is
    5·1 answer
  • If a person gets 5 dollars per week and they are saving for 200 dollars, how long until they reach their goal?
    10·2 answers
  • The idea of diminishing returns to an input in production suggests that if a local college adds more and more custodians, the ma
    14·1 answer
  • Câu 4: Các hoạt động tiếp thị quá đáng mang tính quảng cáo hay lạm dụng lợi ích đến người kê toa nên được kiểm soát bởi:
    15·1 answer
  • Why are cooperatives formed?
    7·2 answers
  • According to the sarbanes-oxley act, who is responsible for the corporation's financial statements?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!