Answer:
Carried over at the fair value that exists on date of transfer.
Explanation:
When the investor's level of influence changes, it may be necessary to change to the equity method from another method. When the level of ownership rises from less than 20% to a range of 20% to 50%, the equity method typically would become appropriate and the investment account balance should be carried over at the fair value that exists on date of transfer.
Hello There!
Your answer would be <u>C). A tortious act may also be a criminal act.</u>
The reason why C would be your answer is because a tortious act is something that harms someone in any way. The reason why it "may" be a criminal act is because determine if the tortious act is a criminal act really depends on the scenario that is occurring. For example, someone could cause a tortious act in a way of self defense, this scenario would be debatable because the person that committed the tortious act had a valid reason in doing so, and that was protecting themselves. But, if a person was to cause a tortious act by hurting someone to steal from them, then that would definitely be a criminal act because they are performing dangerous things to someone else, and the person could file a lawsuit against it.
Let's dive into why the other answer choices are incorrect. We can use the old fashion process of elimination:
Answer choice "A). A tortious act is always a criminal act" is incorrect because it is not always a criminal act, it depends on the scenario it's in. This is the reason why this answer choice would be eliminated.
Answer choice "B). A criminal act is always a tortious act" is incorrect because there are MANY criminal acts that doesn't harm anyone, for example, tax evasion (not paying taxes) is a criminal act, but does not cause any harm to anyone. This is the reason why this answer choice would be eliminated.
Answer choice "D). A tortious act is the same as a contract dispute" is incorrect because harming someone is not the same as not doing what a contract says. A contact dispute is when someone that's part of a contract did not do a duty that the contract says that they're suppose to do, and that usually doesn't have to be any harm to anyone. That would not be the same as a tortious act, harming someone. This is the reason why this answer choice would be eliminated.
Answer:
internal rate of return -16.17%
Explanation:
The internal rate of return is negative because the investment didn't receive dividends for two years. It means that the stock lost value. How much? 16.17% of its value in two years.
<h2>
34 * (1 - 16,17%) = 28.5 </h2>
Answer:
15.01%
Explanation:
The computation of the return on equity is shown below:
Return on equity = Net income ÷ Equity at the end of 2010 × 100
where,
Net income is $539
And, the equity at the end of 2010 is
= Common Stock + Retained Earnings
= $2,890 + $700
= $3,590
So, the return on equity is
= $539 ÷ $3,590 × 100
= 15.01%
We simply applied the above formula to determine the return on equity
