Answer:
a. $51,840
b. $15,440
Explanation;
a. First find the excess fair-value allocation;
= Fair value of Nephew - Book Value
Fair Value = Uncle ownership + Non-controlling interest
= 672,000 + 168,000
= $840,000
Excess fair value = 840,000 - 806,000
= $34,000
Any excess fair-value allocations are amortized over a 10-year period;
= 34,000/10
= $3,400
The Income to be recognized will be reduced by this yearly amotization so the 2014 income recognized by Uncle would be;
= (Nephew income - Amortization) * Uncle ownership stake
= ( 68,200 - 3,400) * 0.8
= $51,840
b. Nephew Company also owns 30% of Uncle which means that they will receive 30% of Uncle dividends.
= 0.3 * 30,000
= $9,000
Added to their own income;
= 9,000 + 68,200
= $77,200
The Non-controlling interest owns 20% so the income they will recognise is;
= 0.2 * 132,100
= $15,440
Answer: True.
Explanation:
Personalized services are services that are flexible in delivery and can change with individual preferences.
Smaller businesses find it easier to render customised services to their customers, because their customers are fewer and they are eager to get more, which makes them to put in extra effort, in satisfying each customer.
Bigger businesses have a larger customers population and has a difficulty most times in totally satisfying their every needs.
Answer:
$10,000
Explanation:
Data provided in the question:
Dividend per share = $0.90
Number of shares = 40,000
Number of years for which dividend is not paid = 4 years
Dividend paid this year = $170,000
Now,
Dividend still in arrears
= ( Number of years × Shares × Dividend per share ) - Dividend paid this year
= [ ( 4 + 1 ) × 40,000 × $0.9 ] - [ $170,000 ]
= $180,000 - $170,000
= $10,000
C) Consumer Price Index (CPI)
CPI: The government periodically record the average price increase of the most popular goods and services ( the basket of goods) purchased within an economy. Then, that is then calculated to get the inflation rates.
——-
197197 - 188188 = 9009
(-) 9009 / 188188 = -0.04787....
-0.04787 x 100 = - 4.8%
It’s actually deflation over 2008-2009
