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oksian1 [2.3K]
3 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]3 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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Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point directly to the left of it. Assu
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Answer:

new law that interfaces with productive efficiency.

Explanation:

The Production possibility curve shows all the two combination of goods or services that can be produced in an economy given its resources and technology. Carrying out production on the production possibility curve is efficient. Carrying out production to the right of the production possibility curve or outside the curve is impossible. Carrying out production inside or to the left of the production possibility indicates inefficiency in production .

Technological improvement and a gain of resources shifts the curve outward.

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I hope my answer helps you

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3 years ago
Locking a cell so that others cannot alter its contents is known as _____.
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North Division has the following information:
VLD [36.1K]

Answer:

due to elimination

income will decrease by $526000

Explanation:

Given data

Sales =  $1180000  

Variable expenses = $654000  

Fixed expenses =  $620000

to find out

incremental effect on net income

solution

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so contribution  if the division is dropped is sales - Variable expenses

put these value

contribution = 1180000 - 654000

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income will decrease by $526000

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