1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AveGali [126]
3 years ago
11

Change from the fair value method to the equity method Assume an investor company acquires for $256,000 an 8% investment in the

common stock of an investee company on February 15, 2018. The investor determined the common stock of the investee has a readily determinable fair value. On December 31, 2018, the fair value of the 8% common stock investment is $272,000, and the investor company made made all of the appropriate adjustments in preparation of the annual financial statements. On March 1, 2019, the investor company acquires an additional 17% of common stock of the investee for $612,000, thereby increasing the investor's overall ownership interest to 25%.
Required a. Prepare the journal entries the investor company should record on March 1, 2019. Note: If a journal entry is not required, select "N/A" as your answers for the drop-down options and leave the Debit and Credit answers blank (zero).
Business
1 answer:
matrenka [14]3 years ago
6 0

Answer:

Date         Account title and explanation      Debit        Credit

March 1    Equity investment                          $32,000

                ($612,000/17%)*8% - $256,000)

                       Unrealized holding gain                             $32,000

               (To adjust the value of equity investment)

Note: On 1 march, value of the investment value is increased which is unrealized based on 31 December fair value

You might be interested in
A researcher is testing a new painkiller that claims to relieve pain in less than 15 minutes, on average. a. State the hypothese
zmey [24]

Answer:

a. H0 : U ≥ 15

   Ha : U < 15

b. Type I error is incorrectly conclude that the pain is reduced in less than 15 minutes.

c. Type II error is fail to conclude that time for pain reduction is less than 15 mints when actually its less than 15 minutes.

Explanation:

Null hypothesis is a statement that is to be tested against the alternative hypothesis and then decision is taken whether to accept or reject the null hypothesis.

Type I error is one in which we reject a true null hypothesis.

Type II error is one in which we fail to reject the null hypothesis that is actually false.

6 0
4 years ago
Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes pa
SSSSS [86.1K]

Answer:

A. True

Explanation:

The term business intelligence refers to the plans, process through which the raw data is to be converted into meaningful information that became relevant for the ethical decision making so that the goals and the objectives of the company could be accomplished.  

Data + Process = Information

Collection of information through internal and external parties would also help to analyze the trends, patterns for better decision making.  

Therefore, the given statement is true.

5 0
3 years ago
Dartmouth Assessment Centre screens and trains employees for a computer assembly firm in Halifax. The progress of all trainees i
alexdok [17]

Answer:

Discourage Torri from continuing. Encourage Julie to continue.

Explanation:

The progress of all trainees is tracked. Those not showing good progress are moved to less demanding programs. This means that there is hope of still doing/getting a job, if they don't pass this test.

REQUIREMENT: By the 10th time doing the test, trainees must be able to complete the task in a maximum of 1 hour.

1st Trainee: Torri Olson-Alves

5 hours on Unit 4;   4 hours on Unit 8

Should Torri be encouraged to continue? NO.

There are 10 units or repetitions in all. If Torri spends 5 hours on Unit 4 and spends 4 hours on Unit 8, then Torri is slow or isn't making much progress. After 4 repetitions, her marginal product only increased by an hour. She most likely won't make it to 1 hour by the 10th repetition.

2nd Trainee: Julie Burgmeier

4 hours on Unit 3;   3 hours on Unit 6

Should Julie be encouraged to continue? YES.

Julie makes a progress of 1 hour after 3 repetitions. We can predict that after another 3 repetitions (on Unit 9) progress would be made again and by Unit 10, she would have met the required benchmark.

3 0
3 years ago
Alltech Company maintains a separate accounts receivable account for each customer. On June​ 18, Alltech provides $ 6 comma 100
AURORKA [14]

Answer:

How will these two transactions affect the control and subsidiary​ accounts?

Explanation:

the control, account.

Accounts Receivable, will be increased with debit of $7,700

6 0
3 years ago
Other things held constant, an increase in financial leverage will decrease a for-profit business’s market risk as measured by i
vaieri [72.5K]

Answer:

False because if the financial leverage is growing then the Financial risk will start growing and this increase in the financial risk will increase the beta. Furthermore this increase in financial leverage is also responsible for the increase in the Bankruptcy Risk.

Remember the beta factor is directly proportional to market risk (Systematic Risk) this means if the market risk is increasing then the beta will also increase and if the market risk is decreasing then the beta is decreasing. This is evident from the fact that people require more returns from their investments in Asia than USA. The reason is that the Market risk in Asian countries is more than United states of America.

8 0
3 years ago
Other questions:
  • You met Tevin on a social media website. He was a personable, effective communicator. While online, he asked for a donation to a
    6·1 answer
  • In wayne dennis's study of infants in iranian orphanages, only 15 percent of the orphans were walking alone by 3 to 4 years of a
    12·1 answer
  • From the point of view of economics, information systems technology can be viewed as a factor of production that can be substitu
    8·1 answer
  • What is a person who compromises called?
    8·1 answer
  • O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual, not semiannual yiel
    7·1 answer
  • If a well-diversified portfolio of stocks has an expected return of 15% when the expected return on the market portfolio is 10%,
    5·1 answer
  • What is a similarity between a term life insurance policy and a whole life insurance policy?
    5·1 answer
  • The difference between a financial aid package and total cost of collage can be made up by ______.
    8·2 answers
  • In which stage of the product life cycle will promotional expenditures be especially high in an attempt to create consumer aware
    9·1 answer
  • supply chain management: group of answer choices is based on the concept of just-in-time focuses on removing scheduling bottlene
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!