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Ann [662]
3 years ago
5

When an investor appropriately applies the equity method, how should it account for any investee other comprehensive income (oci

)?
Business
2 answers:
Lorico [155]3 years ago
6 0
Basically, the equity method is used to account the amount of an investment which is made by a company on an entity.However, this is done by an investor who contains a substantial amount of investment in the investee company.The investee records any adjustments in the other comprehensive income whereas the investor makes changes in the investment account.
Lelechka [254]3 years ago
5 0

An investor ought to consistently utilize the equity method to represent a investment on the off chance that It can practice significant impact over the working arrangements of the investee. For every single other resource and liabilities, book worth and reasonable worth were equivalent.  

Further Explanation:  

Equity method of investment:

The equity method is a accounting technique utilized by firms to survey the benefits earned by their interests in different organizations. The firm reports the pay earned on the speculation on its salary explanation, and the revealed worth depends on a lot of the organization resources.  

Other comprehensive income (OCI):  

In business accounting, other comprehensive income (OCI) incorporates incomes, costs, additions, and misfortunes that still can't seem to be figured it out. A customary case of an OCI is an arrangement of bonds that have not yet developed and subsequently haven't been reclaimed.  

Type of account is OCI:  

Collected other comprehensive investment is a general record account that is grouped inside the value segment of the monetary record. It is utilized to amass undiscovered increases and hidden misfortunes on those details in the pay articulation that are characterized inside the other extensive salary classification.

Subject: business

Level: college

Keywords: Equity method of investment,   Other comprehensive income (OCI), Type of account is OCI.

Learn more about evolution on:

brainly.com/question/4469392

brainly.com/question/2899094

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Four students are storing this fact: "europeans first settled at st. augustine, florida, in 1565." which student is probably goi
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The student who is probably going to have the most difficult time retrieving the information from long-term memory a few days later would be: “Alexander who repeats the fact to himself 10 times in a row.”  

<span>Aside from Alexander, all other students are using visual representation or other facts to help them remember the original fact.  The method of memorization Alexander doing is very prone to be overlooked since he is storing it word by word rather than trying to associate it with other easier things to remember.</span>

3 0
3 years ago
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 74,000 shares authori
uysha [10]

Answer:

1,                            Journal entries

Date    Account and explanation         Debi$       Credit$

          Treasury stock (5200*27)          140,400

           Cash                                                              140,400

           (To record purchase treasury stock)

            Cash (1,050*33)                           34,650  

            Paid in capital from sale of treasury stock    6,300

            Treasury stock (1,050*27)                               28,350

             (To record sale of treasury stock)  

              Cash (4,150*22)                             91,300

              Paid in capital from sale of            6,300

              treasury stock  

              Retained earnings                         14,450

              Treasury stock (4,150*27)                                112,050

              (To record sale of treasury stock)  

2.  Revised equity section

<u>Contributed capital</u>

Common Stock                             740,000

Paid in capital in excess of           <u>226,000</u>

par value-Common Stock

Total paid in capital                        966,000

Retained earnings                         <u> 880,000</u>

Total                                                1,846,000

Less: Treasury stock                      <u>(140,400)</u>

Total Stockholder's equity            $<u>1,705,600</u>

5 0
2 years ago
Monument Health buys $400,000 of a particular item (at gross prices) from its major supplier, Cardinal Health, which offers Monu
Anna007 [38]

1. The amount of the free trade credit that Monument Health obtains from Cardinal Health is <u>$400,000.00</u>.

2. The total amount of trade credit offered by Cardinal is <u>$404,000.00</u>.

3. The approximate annual cost of the costly trade credit is <u>72%</u>.

4. <u>No.</u> Monument Health should not replace a portion of the trade credit with a bank loan.

5. If the bank loan is used, the trade credit should be replaced by $133,333.00.

<h3>What is trade credit?</h3>

Trade credit is a business arrangement that allows the buyer to buy goods in exchange for later payment.

Giving trade credit is costly to the seller but profitable to the buyer, especially with the offer of cash discounts.

<h3>Data and Calculations:</h3>

Gross prices = $400,000

Terms of trade = 1/5, net 15

Bank loan = $400,000

Loan interest rate = 12%

Days per year = 360 days

Cost of Trade Credit for 5 days = $4,000.00 ($400,000 x 1%)

Annualized cost = 72% (1%/5 x 360)

Cost of bank loan for 10 days = $1,333.33 ($400,000 x 12% x 10/360)

Learn more about trade credit and cash discounts at brainly.com/question/14883253

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6 0
2 years ago
Property owners on one street have petitioned the city to install paved alleys behind their homes. If Marcus has a rectangular l
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Answer: 90 feet

Explanation:

From the question, we are told that Property owners on one street have petitioned the city to install paved alleys behind their homes and that Marcus has a rectangular lot that measures 90 feet by 140 feet.

He would pay the special assessment based on 90 feet which is the width of the rectangular lot.

8 0
3 years ago
Terminating an employee for the use of illegal drugs is an example of a(n) _____ turnover. retentive external voluntary absentee
klasskru [66]

Answer:

involuntary

Explanation:

Involuntary turnover happens when an employee is dismissed from a position and asked to leave. In that respect, employees may be expelled for several reasons, usually for deficient performance and inadequate behavior. In contrast, voluntary turnover occurs when employees quit and the company wishes to keep them.

3 0
3 years ago
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