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gladu [14]
3 years ago
8

At the start of the current year, SBC Corp. purchased 25% of Sky Tech Inc. for $46 million. At the time of purchase, the carryin

g value of Sky Tech's net assets was $62 million. The fair value of Sky Tech's depreciable assets was $10 million in excess of their book value. For this year, Sky Tech reported a net income of $62 million and declared and paid $10 million in dividends. The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is: Multiple Choice a. $2.5 million. b. $10 million. c. $18 million. d. None of these answer choices are correct.
Business
1 answer:
aliya0001 [1]3 years ago
7 0

Answer:

total amount of additional depreciation = $2.5 million

so correct option is a. $2.5 million

Explanation:

given data

purchased  25% = $46 million

net assets = $62 million

depreciable assets = $10 million

net income = $62 million  

dividends = $10 million

to find out

total amount of additional depreciation to be recognized by SBC over the remaining life of the assets

solution

we get here total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is

total amount of additional depreciation = $10 million × 25%

total amount of additional depreciation = $10 million × 0.25

total amount of additional depreciation = $2.5 million

so correct option is a. $2.5 million

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Explanation:

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2 years ago
The focus of Performance Based Logistics (PBL) is to leverage best practices of both Government and Industry.
natita [175]

The focus of Performance Based Logistics (PBL) is to leverage best practices of both Government and Industry.--- True

Explanation:

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8 0
1 year ago
Which tasks are common to all Energy pathways?
Gennadij [26K]
Performing calculations and using equipment
5 0
3 years ago
True or False<br><br> To raise money, a partnership can sell stock.
nataly862011 [7]

Answer:

The answer is false. Partnerships can not sell stocks. They even can not issue shares to finance Thier requirements.

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Explanation:

3 0
3 years ago
The BRS Corporation makes collections on sales according to the following schedule: 45% in month of sale 50% in month following
swat32

Answer:

$174,500.

Explanation:

Budgeted sale in June would made up of the collections:

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Month following sale

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3 years ago
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