A back-up plan is a (an)...

Atlarge Inc. owns 30% of the outstanding voting common stock of Ticker Co. and has the ability to significantly influence the in

dem82 [27]

Answer:

C. $22,672

B. $413,872

Explanation:

a. The computation of Amount realized by Ticker is shown below:-

Unrealized profit = (48,000 - $28,800) × 25% × 30%

= $19,200 × 25% × 30%

= $1,440

Unrealized profit from Additional sales = ($60,000 - $33,600) × 40% × 30%

= $26,400 × 40% × 30%

= $3,168

Ownership Interest = (Earned income × Outstanding percentage) + Unrealized profit - (Investment + Unrealized profit from Additional sales)

= (108,000 × 30%) + $1,440 - ($8,000 + $3,618)

= $32,400 + $1,440 - $11,618

= $22,672

b. The computation of balance in the Investment is given below:-

Balance of investment = Investment + Interest - Dividend

= $402,000 + $22,672 - ($36,000 × 30)

= $402,000 + $22,672 - $10,800

= $413,872

6 0

3 years ago

Riggs Company purchases sails and produces sailboats. It currently produces 1,200 sailboats per year, operating at normal capaci

faltersainse [42]

Answer:

It is more convenient to produce the sails in house.

Explanation:

Giving the following information:

Riggs purchases sails at $ 250 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $ 100 for direct materials, $ 80 for direct labor, and $ 90 for overhead. The $ 90 overhead includes $ 78,000 of annual fixed overhead that is allocated using normal capacity.

Because there will not be an increase in fixed costs, we will not have them into account.

Variable overhead= 90 - (78,000/1,200)= 25

Unitary variable cost= 100 + 80 + 25= 205

It is more convenient to produce the sails in house.

8 0

3 years ago

20.While reconciling the checking account, an accountant with Sonic Corporation noticed that an error had been made in recording

Lina20 [59]

Answer:

You need to deduct $450 from the company's cash balance. Since the check was received from a client, it covered an accounts receivable, so the adjusting entry should be as follows:

XX/YY, adjusting entry to reconcile checking account:

Dr Accounts receivable 450

Cr Cash 450

Accounts receivable and cash both have debit balances, and since you want to increase accounts receivable you must debit it, while you must credit cash in order to decrease it.

8 0

3 years ago

The earned value system starts with the time-phased costs that provide the project baseline, which is called the ___________.a.

nikklg [1K]

Answer:

A. Planned budgeted value of work scheduled.

Explanation:

Earned Value system is a technique used in project management in estimating how well a project is doing in terms of the project budget and allocated schedule. It is used in estimating project efficiency in terms of the estimated deliverables. It helps in checking of the project is going according to "plan". Project efficiencies are measured against the baseline of a project which is the planned budgeted value of work with the aid of earned value system in order to quickly track any deviations in the project.

7 0

3 years ago

The computation of the alternative minimum tax base begins with regular taxable income. Which of the following is not part of th

klemol [59]

Answer:

A. Subtract state income taxes paid.

7 0

3 years ago