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jeka57 [31]
3 years ago
9

Koehn Corporation accounts for its investment in the ordinary shares of Sells Company under the equity method. Koehn Corporation

should ordinarily record a cash dividend received from Sells as:_______.a. a reduction of the carrying value of the investmentb. share premiumc. an addition to the carrying value of the investmentd. dividend income
Business
1 answer:
AVprozaik [17]3 years ago
5 0

Answer:

A) a reduction of the carrying value of the investment

Explanation:

Under the equity method, the investor company cannot record dividends as revenue, it must record them as a reduction of the carrying value of their investment. Under the equity method, the value of the investment decreases with cash dividends. This transaction involves only a change between assets, investment decreases while cash increases, no additional revenue is recorded.

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Applewood, Inc. has a contract with Marco's Electronics to sell Marco's 500 car audio systems at a price of $100 each. Applewood
Gekata [30.6K]

Answer:

Applewood can stop the shipment and have the goods returned (the right of stoppage of goods).

Explanation:

When the buyer becomes insolvent while the goods are in transit, and the goods have not been paid yet, then the seller has the right to stop the delivery and resume possession of the goods.

Applewood could also try to sue Marco for specific performance but considering their current position it might be useless and actually result in more money invested and larger losses.

5 0
3 years ago
Which of the following organizations would be MOST likely to face a dynamic/complex environment? a. Oracle b. Whirlpool c. JCPen
alekssr [168]

Answer:

The correct answer is letter "A": Oracle.

Explanation:

Dynamic-complex organizations are those with diverse operations that are constantly changing because of the rapid development of their industry. Firms that fall into this category are mainly technological which products tend to have a short life cycle.

Thus, <em>American cloud-solutions company Oracle can be described as one having dynamic-complex processes.</em>

8 0
3 years ago
"Investment X offers to pay you $5,800 per year for 9 years, whereas Investment Y offers to pay you $8,600 per year for 5 years.
Butoxors [25]

Answer:

Present value of investment X = $41,225.37

Present value of investment Y = $37,233.50

Explanation:

The present value of the cash flows can be found by discounting the cash flows at the discount rate.

This can be found using a financial calculator

Cash flow each year from year 1 to 9 for investment X = $5,800 

Discount rate = 5%

Present value = $41,225.37

Cash flow each year from year one to year 5 for investment Y = $8,600 

Discount rate = 5%

Present value = $37,233.50

I hope my answer helps you

5 0
3 years ago
A ___ in the money supply will cause interest rates to decrease which in turn causes spending to come ?
vitfil [10]

Answer:

decrease/decrease

Explanation:

The interest rate is a monetary mechanism that serves to keep inflation under control. Inflation is a monetary phenomenon, caused by excess currency in circulation. Thus, the more money in circulation, the higher the interest rate tends to be. Conversely, when the money supply is smaller, inflation will be lower. Consequently, the interest rate will be low. Similarly, when the money supply is high, spending on the economy increases (and causes inflation). When the money supply is low, less money will be in circulation and spending will decrease. Inflation will be low. And the interest rate too!

5 0
3 years ago
Read 2 more answers
In a shoe manufacturing plant, all shoes undergo the same operations in the same sequence. the shoes flow from one workstation t
andre [41]
The answer is product layout. In manufacturing engineering, this talk about to a manufacture system where the work locations and apparatus are situated beside the line of production, as with assemblage lines. Generally, work units are stirred along a line (not essentially a geometric line, but a set of consistent work stations) by a conveyor.
6 0
3 years ago
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