Answer:
Taxable income = Gross income - Total operating expenses - Depreciation
= 500,000 - 400,000 - 60,000
= $40,000
Federal corporate income tax rate in 2017 was 35% so income taxes are;
= 40,000 * 35%
= $14,000
Answer:
$7,000,000
Explanation:
Accounting for Non-Controlling Interest requires measurement of stock at Fair Value.
Total fair value of firm = Fair value of common stock + Fair value of preferred stock
= $62,000,000 + $8,000,000
= $70,000,000
90% of equity represent the extent of controlling interest in the firm. Thus, remaining 10% will be the value of non-controlling interest.
As already discussed, non controlling interest requires measurement at fair value:
Non-Controlling Interest = Total Fair Value x Percentage of Non-Controlling Interest
= $70,000,000 x 10%
= $7,000,000 (Answer)
What do you mean bro? I don't understand...like what kind of answer, your question is kind of interesting though.
Sometimes a country's laws forbid foreigners from owning a business in the nation. In the presence of such laws, a(n) joint venture is one way for an American company to have a presence in that foreign country.
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Explanation:</u></h3>
When two or more companies agree to put their resources for the purpose of the accomplishment of specific tasks refers to the Joint Ventures. These tasks may include some business activity or starting a new project. The things or the resources that are shared between two companies in JV include knowledge, assets, intellectual property, etc.
It is different from merger in such a way that there is an absence of the ownership transfer in JV. The main aim is to gain economies of scale, lower the cost of production, innovation, access to technology, etc. The law of a country sometimes may restrict foreigners from owning a business in the nation. In such situations joint venture is way for an American company to have a presence in that foreign country.