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Phoenix [80]
3 years ago
14

When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70, 000 and a fair value o

f $100, 000. What amount should have been reported for the land in a consolidated balance sheet at the acquisition date?
A) $ 52, 500.
B) $ 70, 000.
C) $ 75, 000.
D) $ 92, 500.
E) $ 100, 000.
Business
1 answer:
Serjik [45]3 years ago
5 0

Answer:

E) $ 100, 000.

Explanation:

Under consolidation when the share holding is 50% or more, then it is a parent, subsidiary relationship and in that case equity method is followed.

All the assets of subsidiary are reported in the balance sheet of holding company also. This is to be reported at fair market value.

The minority shareholding is calculated for their share and shown separately.

But all assets are recorded at fair value.

Thus, the correct option shall be:

$100,000 being the fair value of land.

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Brilliant_brown [7]
Customer relationship management is my guess

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5 0
3 years ago
Bonner Automotive has shareholders' equity of $218,700. The firm owes a total of $141,000 of which 40 percent is payable within
MA_775_DIABLO [31]

Answer:

$93,500

Explanation:

Net Working Capital = Current Assets - Current Liabilities

Current Assets = Total Equity + Liability - Fixed Assets

= $218,700 + $141,000 - $209,800 = $149,900

Current Liability = $141,000 X 40% = $56,400

As out of total due 40% is payable within a year, which means it is current liability.

Net working capital = $149,900 (current assets) - $56,400 (current liability)

= $93,500

6 0
3 years ago
Jack has a ticket to see Bo Bice for which he paid $30 yesterday. He takes an unpaid day off from work to get ready for the conc
valentina_108 [34]

Answer:

$70

Explanation:

The opportunity cost is the value in which the advantage is produced from the options available. The best gain is term as the opportunity cost

In the question, it is given that the offered price is $70 and the yesterday price is $30 which was paid which terms as a sunk cost. This cost is not useful for decision making as well as for computing the opportunity cost also

So, only $70 would be considered

3 0
3 years ago
A fifteen-year adjustable-rate mortgage of $117,134.80 is being repaid with monthly payments of $988.45 based upon a nominal int
Sedbober [7]

Answer:

Using an excel spreadsheet I prepared an amortization schedule. For the 61st payment, the interest rate is increased from 0.5% to 0.625% monthly.

(a) Calculate the loan balance immediately after the 84th payment.

  • $77,884.78

(b) Calculate the amount of interest in the 84th payment.

  • $489.90

(c) Calculate the amount of the balloon payment.

  • $12,168.43

As you can see, the interest amount for the 61st payment increases, while it had been decreasing previously.

Download pdf
3 0
3 years ago
A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way t
marissa [1.9K]

Answer: A) Prototype

Explanation:

The first model shown to entrepenuers are called prototypes

proto- before

7 0
3 years ago
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