Answer:
$ $
Net Income (137000*30%) (a) 41,100
Add:
Unrealized gains in the beginning inventory 40,000
Unrealized gains at the end of the year 25,000
Difference 15,000
(NCI in Unrealized gain (15,000*30%) (b) 4,500
Non-controlling interest's share of Devin's net income for 2012 ($41,100+$4,500) 45,600
Non-controlling interest's share of Devin's net income for 2012= $45,600
Explanation:
Answer:
Simple rate of return = 6.25%
Explanation:
As per the data given in the question,
Net operating income = saving - depreciation on machine
Investment = cost price - scrap value
So, we can calculate the simple rate of return by using following formula:
Simple rate of return = Net operating income ÷ investment
By putting the value, we get
= ($138,000 - $89,200) ÷ ($802,800 - $22,200)
= 0.0625
= 6.25%
Answer:
Budget deficit / Fiscal deficit
Explanation:
At the start of the year, every government prepares a budget e.g. all sources of revenue (direct taxes, indirect taxes, aids etc) and projected expenses are also mentioned (development of society, defense etc.).
When a government spends more than its revenue from taxes so it means that government is running a budget deficit or a fiscal deficit which are covered through fiscal measures by government e.g. increasing taxes or reducing public spending.
