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oksian1 [2.3K]
2 years ago
13

Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Tra

ce reported net income of $110,000 for 2013 and paid dividends of $60,000 on October 1, 2013. How much income should Gaw recognize on this investment in 2013?a. $ 16,500 b. $ 9,000 c. $ 25,500
Business
1 answer:
ivann1987 [24]2 years ago
6 0

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Net income = $110,000

Dividends paid = $60,000

Common stock owns = 15%

So, we can calculate the income for particular investment by using following method:

Income to be recognized = Dividends paid × Common stock owned

by putting the value, we get

= $60,000 × 15%

= $60,000 × 0.15

= $9,000

Hence, the income to be recognized on this investment is $9,000.

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This is due at 12. please help me
Over [174]
1. 110
2. 75
Won 110
Lost 35.
I tried my best sorry if it wrong.
5 0
2 years ago
When assuming nonconstant growth in dividends, to avoid the problem of having to forecast and discount an infinite number of div
Sergio039 [100]

To avoid the problem of having to forecast and discount an infinite number of dividends, we must require that the dividends start to grow at a fixed rate in the future.

<h3>What are dividends?</h3>

Dividends are payments made by a company to its shareholders. This money is taken from the total profits made by the company. The remaining money after the payment of dividends goes to re-investment in order to grow the company.

Therefore, we can confirm that in order to avoid the problems presented in the question regarding dividends, we must require that they grow at a fixed rate in the future.

To learn more about profit visit:

brainly.com/question/1494270?referrer=searchResults

4 0
2 years ago
Vinson Company purchased a patent for $180,000 at the beginning of Year8, and estimated that its expected useful life was 5 year
Alona [7]

Answer:

amortization expense is $36000

Explanation:

given data

purchased = $180000

time = 5 year

to find out

amount recorded as amortization expense

solution

we know here purchased  patent  for 180000 and here life is 5 years

so here

amortization expense will be purchased / time

amortization expense =  purchased / time

amortization expense = 180000 / 5

so amortization expense is $36000

6 0
3 years ago
Pequeno Pesos Restaurants, Inc. is a chain of restaurants featuring authentic, affordable Mexican cuisine around the United Stat
blagie [28]

Answer:

A. Information published by the U.S. Bureau of the Census that identifies which regions of the United States are experiencing the most rapid growth in Mexican-American population.

Explanation:

As the restaurant is famous and serves the Mexican cuisine, it needs data that will provide information about the interests of people in Mexican Cuisine.

The information published by the US Bureau about the population of Mexican citizens growing will help the restaurant identify the areas where it will find its most probable customers for the Mexican Cuisine.

The census will provide the maximum information about the regions with the population with Mexican people as the chances to like Mexican cuisine is maximum with Mexican population.

7 0
3 years ago
Your client, Tom, asks you to prepare his financial statements. He is especially curious about his net worth. He asks you to exp
Vilka [71]

Answer: Balance sheet

Explanation: In simple words, balance sheet refers to the statement which is prepared by an entity at the end of the financial year for depicting its assets, liabilities and equity in hand at that particular point of time.

Balance sheet shows the net worth of an entity at the end of the year and can also be used to evaluate how much of the assets are funded with the capital and  for how much any liability has been taken over.

Thus, from the above we can conclude that the correct answer is balance sheet.

6 0
3 years ago
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