Answer:
The Total amount shown in income statement as income from this investment is $ 27,200.00
Explanation:
In order to calculate the effect of this investment on the 2021 income statement we would have to make the following calculation:
effect of this investment on the 2021 income statement= Dividend received by Howdy Doody corporation+Increase in Fair value of Stock credited to income statement
Dividend received by Howdy Doody corporation=$60,000 x 12%= $7,200.00
Increase in Fair value of Stock credited to income statement=$70,000-$50,000=$ 20,000.00
Therefore, effect of this investment on the 2021 income statement= $7,200.00
+$ 20,000.00
=$27,200
The Total amount shown in income statement as income from this investment is $ 27,200.00
Remainder part of the question:
This turned out to be a very poor growth strategy because
A. the capital stock was increasing less rapidly than technology.
B. the amount of labor per unit of capital was increasing.
C. there were diminishing returns to capital.
D. the amount of capital per hour worked was decreasing
Answer:
Option C There were diminishing returns to capital.
Explanation:
The reason is that the investment gave diminishing returns which didn't covered its cost of capital (the cost that we pay to finance providers). This diminishing returns limited the investment in the forthcoming period and as result we see the fall of Soviet Union. So this option provides a better insight to the poor growth strategy. The investment must be in projects that generates greater value to the organization.
Answer:
$1,070
Explanation:
Calculation to determine the amount of applied overhead is:
Using this formula
Applied overhead = Total cost of WIP - Direct materials - Direct labor
Let plug in the formula
Applied overhead= $3,550 - $1,610 - $870
Applied overhead=$1,070
Therefore the amount of applied overhead is:$1,070