Savannah Corporation should report revenue from investment for 2017 in the amount of $80,000.
<h3>Amount to be reported as revenue</h3>
First step
Percentage ownership=35,000/140,000 shares ×100
Percentage ownership=25%.
Second step
Using equity method
Revenue from investment=25%× $320,000
Revenue from investment=$80,000
Therefore Savannah Corporation should report revenue from investment for 2017 in the amount of $80,000.
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Answer:
a. An individual sells her house on her own.
GDP is not affected.
b. An individual sells his house through a broker.
GDP is not affected.
c. Government increases Social Security payments.
GDP is not affected.
d. Stock prices rise by 20 percent.
GDP will increase.
Explanation:
Selling a house by an individual does not affect the Gross Domestic Product of a Country.
Selling a house by a broker will also not affect the Gross Domestic Product of a Country.
When a Government increases the social security payments, this result in transfer of money from government to social security account but it does not generate any goods are services in the country.
When the stock prices increases in the country, there is more likely that the individuals will invest in the stocks. So investments will increase and thus GDP will rise.
Answer:
Q = 10
Explanation:
Assuming that supply remains the same, the new supply and demand equations are, respectively:

The equilibrium quantity occurs at the point for which the prices in the supply and demand equations are the same:

The new equilibrium quantity is Q = 10.
Answer:
Total present value=$617,523.24
Explanation:
The formula for calculating continuous compounding is given as follows
F=P(e^it)
F=future value
P=present value
i=interest rate
t=time involved i.e 1 year or 2 year
e=Mathematical constant=2.7183
By applying above mentioned formula, the present value of inventory control software by Baron Chemicals shall be calculated as follows:
Present value of year 2 Cash flow= $286,555.76
($350,000/e^10%*2)
Present value of year 1 Cash flow= $180,967.48
($200,000/e^10%*1)
Present value of year 0 Cash flow= $150,000
Total present value=$617,523.24