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iogann1982 [59]
3 years ago
10

Under the equity method of accounting for investments, an investor recognizes its share of the earnings in the period in which t

he:_________.
a. investor sells the investment
b. investee declares a dividend
c. investee pays a dividend
d. earnings are reported by the investee in its financial statements
Business
1 answer:
Sphinxa [80]3 years ago
8 0

Answer: Earnings are reported by the investee in its financial statements

Explanation:

Equity method is when investments are being treated in associate companies and it is usually applied in cases whereby an investor entity holds about twenty to fifty percent of the associate company's voting stock. Due to this reason, it has a strong say in the associate company's management.

Under the equity method of accounting for investments, an investor recognizes its share of the earning in the period in which the earnings are reported by the investee in its financial statements.

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The balance sheet items of Kiner company as of December 31, current year, follow in random order
liberstina [14]
Retained Earnings = $86,000

Accounting Equation…Assets= Liabilities + Owners Equity

Assets (Cash, acct rec, equipment, building, land) = $421,000

Liabilities (Notes payable, accounts payable)= $260,000

Equity (capital stock) = $75,000

Liabilities + Equity= $335,000

Retained Earnings flows into equity

$421,000-$335,000= $86,000

$335,000+86,000= $421,000

So the equation balances.
6 0
3 years ago
When determining how much help is needed to write the business plan an entrepreneur should conduct a self-assessment. In this se
abruzzese [7]

venture capital would not be considered

<h3>What is venture capital?</h3>

Venture capital is a type of private equity financing provided by venture capital firms or funds to startups, early-stage, and emerging companies with high growth potential or that have demonstrated high growth.

Venture capital is money put into startups and small businesses that are high risk but have the potential for exponential growth. A venture capital investment seeks a high return for the venture capital firm, typically in the form of a startup acquisition or an IPO.

To know more about venture capital follow the link:

brainly.com/question/18776651

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5 0
2 years ago
Lisa agrees to sell Deb an electronic entertainment center worth $1,000 for $700 in order to have a rapid sale. Later Lisa insis
klemol [59]

Lisa agrees to sell Deb an electronic entertainment center worth $1,000 for $700 in order to have a rapid sale. Later Lisa insists that she may rescind this agreement since the agreed price was 30% below fair market value. Lisa may not rescind since Lisa and Debbie freely agreed.

A trade show for the video game industry is called E3. For the purpose of introducing and publicizing new games and game-related items to retailers and the media, the Entertainment Software Association organizes and presents E3, which is attended by a large number of developers, publishers, hardware, and accessory makers.

Internet-based entertainment that a user can view or hear: We anticipate that increased access to broadband will open up e-commerce and entertainment to everyone.

Learn more about Entertainment Software Association  here brainly.com/question/13615489

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6 0
2 years ago
The U.S. Department of Agriculture guarantees dairy producers that they will receive at least $1.00 per pound of butter they sup
Tamiku [17]

Answer:

a) he equilibrum quantity is 95 million pounds of butter and the equilbrum price is $1.20 per pound. At this level, both demand and supply is 95 million.

b) 0 or no surplus.

Explanation:

The question is in three parts

a) a. In the butter market, the monthly equilibrium quantity is million pounds and the equilibrium price is $ per pound

The equilibrum price and quantity refers to that point in sales where the quantity demanded = the quantity supplied.

Looking at the schedule, the equilibrum quantity is 95 million pounds of butter and the equilbrum price is $1.20 per pound. At this level, both demand and supply is 95 million.

b) What is the monthly surplus created in the wholesale butter market due to the price support (price floor) program?

First, what is the price floor fixed by the government = $1.00 per pound and at this rate, the demanded quantity is 101 million and the quantity supplied is 79 million pounds.

Hence, the monthly surplus = 79 million pounds - 101 million pounds = -22 million pounds

At this price, there is no surplus

7 0
3 years ago
A 6-year bond, 8% semiannual coupon bond sells at par ($1,000). Another bond of equal risk, maturity, and par value pays an 8% a
timofeeve [1]

Answer:

Explanation:

  • The bond has 8% coupon paid semiannually, and those bonds sell at their par value.
  • Since the bond sales at par value, Market rate (Yield) = Coupon rate =8%

<u>Second bond:</u>

  • Coupon rate = 8%
  • Par value = $1,000
  • Semiannual coupon amount = 1000 x 8%/2 = $40
  • Time to maturity = 6 years = 12 semiannual periods
  • Semiannual Yield = 8%/2 = 4%

To get price of this bond we will use PV function of excel:

= PV (rate, nper, pmt, fv, type)

= PV (4%, 12, -40, -1000, 0)

= $1053.32

  • Price of this bond = $1,053.3
7 0
3 years ago
Read 2 more answers
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