You need to know more than just facts in order to use critical thinking skills.

On January 1, 2021, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $210,

Usimov [2.4K]

Answer:

"$224,000" is the correct solution.

Explanation:

The given values are:

Corporation purchased percentage,

= 25%

Original investment,

= $210,000

Short's net income,

= $80,000

Paid cash dividend,

= $24,000

Now,

The share of net income will be:

= $25 \ percent\times 80,000$

= $0.25\times 80000$

= $20,000$ ($)

The cash dividend will be:

= $25 \ percent\times 24,000$

= $0.25\times 24,000$

= $6,000$ ($)

hence,

On December 31, 2021, the balance will be:

= $Original \ investment+Net \ income \ share+Cash \ dividend$

= $210,000+20,000+6,000$

= $230,000-6,000$

= $224,000$ ($)

6 0

2 years ago

Country a is characterized by tightly knit social groups and it places importance on belonging to organizations, families, and

eduard

<span>Country is characterized by tightly knit social groups and it places importance on belonging to organizations, families, and other groups, it has collectivism.
</span>In cultures in which collectivism predominates, group decisions are valued and accepted.
<span>In individualism on the other hand, the primary concern is for themselves and their families.</span>

4 0

2 years ago

Which system gives you the most economic freedom?

Dennis_Churaev [7]

Answer:

Singapore

Explanation:

4 0

3 years ago

ABC Company received $9,631 for its 5-year, 10% bonds with a total face value of $10,000. The market rate of interest was 11%. T

Anastaziya [24]

Answer:

The correct answer is Option A.

Explanation:

The effective interest rate (EIR) method is used when a bond is purchased at a discount or premium.

In the case of the question, the bond was purchased at $9,631 with a face value of $10,000. Interest expense is calculated as the bond price multiplied by the market rate, i.e. $9,631 x 11% = $1,059.41.

Therefore, ABC Company would record $1,059 on the first annual interest payment date using the effective-interest method.

5 0

3 years ago

Read 2 more answers

On October 1, 2018, Renfro Company purchased to hold to maturity, 4,000, $1,000, 9% bonds for $3,960,000 which includes $60,000

Nataliya [291]

Answer:

Carrying Value=$3,903,000

Explanation:

First we will calculate the face value:

Face value=4000*$1000

Face value=$4,000,000

Purchase Price= Bond Purchased price- Accrued Interest

Purchase Price=$3,960,000-$60,000

Purchase Price=$3,900,000

Total months=100 months

Straight line Discount amortization= (Face Value-Purchase Price)/Total Months

Straight line Discount amortization=($4,000,000-$3,900,000)/100

Straight line Discount amortization=$1,000

Discount Amortization=Straight line Discount amortization*Discount months

Discount Amortization=$1,000*3

Discount Amortization=$3,000.

Carrying Value=Purchase Price+Discount Amortization

Carrying Value=$3,900,000+$3,000

Carrying Value=$3,903,000

7 0

3 years ago