Answer:
Dr. Investments in Associates 250,000
Cr. Cash 500,000
Dr. Cash 10,000
Cr. Investments in Associates 10,000
Dr. Investments in Associates 50,000
Cr. Investment revenue 50,000
Explanation:
The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.
An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.
- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.
- Jolley records the net income from Tige Co. as an increase to its Investment account.
Answer:
(a) rr: 1/3, cr: 0.5, m:1.8 M: 1800
(b) 1500
(c) 200
Answer:
Solution:
A.
p_x=3, G_x=\frac {100}{3}=33\frac{1}{3}p
x
=3,G
x
=
3
100
=33
3
1
p_y=5, G_y=\frac{100}{5}=20p
y
=5,G
y
=
5
100
=20
B.
100-0.25\times 100=75100−0.25×100=75
p_x=3, G_x=\frac {75}{3}=25p
x
=3,G
x
=
3
75
=25
p_y=5, G_y=\frac{75}{5}=15p
y
=5,G
y
=
5
75
=15
C.
p_x=6, G_x=\frac {100}{6}=16\frac{2}{3}p
x
=6,G
x
=
6
100
=16
3
2
D.
p_y=5, G_y=\frac{100}{4}=25p
y
=5,G
y
=
4
100
=25
2.
MU_x=68-60=8, p_x=2MU
x
=68−60=8,p
x
=2
MU_y=29-25=4, p_y-?MU
y
=29−25=4,p
y
−?
\frac {MU_x}{p_x}=\frac{MU_y}{p_y}
p
x
MU
x
=
p
y
MU
y
\frac{8}{2}=\frac {4}{p_y}
2
8
=
p
y
4
p_y=1p
y
=1
Answer
adjective
1.
first in order of importance; main.
"the country's principal cities"
Similar:
main
chief
primary
leading
foremost
first
most important
predominant
dominant
(most) prominent
key
crucial
vital
essential
basic
staple
critical
pivotal
salient
prime
central
focal
premier
paramount
major
ruling
master
supreme
overriding
cardinal
capital
preeminent
ultimate
uppermost
highest
utmost
top
topmost
arch-
number-one
Opposite:
minor
subordinate
subsidiary
2.
(of money) denoting an original sum invested or lent.
"the principal amount of your investment"
noun
1.
the person with the highest authority or most important position in an organization, institution, or group.
"a design consultancy whose principal is based in San Francisco"
Similar:
boss
chief
chief executive (officer)
CEO
chairman
chairwoman
managing director
MD
president
director
manager
employer
head
leader
ruler
controller
head honcho
gaffer
governor
guv'nor
2.
a sum of money lent or invested, on which interest is paid.
"the winners are paid from the interest without even touching the principal"
Similar:
capital sum
capital
capital funds
working capital
Answer:
$180 billion
Explanation:
The consumption is an act of spending the money from an income. The marginal propensity to consume is the proportion increase in the amount that a consumer is spending. The savings then decline if the consumption increases. In the given scenario the consumption will not raise even if there is an increase in national income and taxes are kept fixed at previous level. This is because marginal propensity to consume is same.
