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Inessa [10]
3 years ago
14

Madison Corporation purchased 40% of Jay Corporation for $400,000 on January 1. On June 20 of the same year, Jay Corporation dec

lared total cash dividends of $100,000. At year-end, Jay Corporation reported net income of $500,000. The balance in Madison Corporation's Long-Term Investment-Jay Corporation account as of December 31 should be:
Multiple Choice

A. $640,000.
B. $240,000.
C. $740,000.
D. $400,000.
E. $560,000.
Business
1 answer:
labwork [276]3 years ago
8 0

Answer:

E. $560,000

Explanation:

Balance of Long term Investment  

= Value of Investment  - Pre Acquisition Dividend ($100,000*40%) + Share of Net Income ($500,000*40%)

= $400,000 - $40,000 + $200,000

= $560,000

Therefore, The balance in Madison Corporation's Long-Term Investment-Jay Corporation account as of December 31 should be $560,000.

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Brankovich Company uses a job-order costing system and has the following data available: Beginning Direct Materials Inventory $2
natka813 [3]

Answer:

$84,000

Explanation:

Open a Raw Materials T - Account and find the Ending inventory of Direct Materials as a Balancing Figure as follows :

Raw Materials T - Account

Debit :

Beginning Inventory                                $26,000

Purchases                                               $148,000

Total                                                         $174,000

Credit:

Requisitioned in Manufacturing             $90,000

Ending Inventory<em>(Balancing figure)        </em>$84,000

Total                                                        $174,000

Therefore,  the cost of the ending inventory of Direct Materials is $84,000

4 0
3 years ago
Chicken and tuna fish are substitutes in consumption. Suppose that new technology decreases the cost of catching tuna. This woul
mihalych1998 [28]

Answer:

B. a decrease; a decrease

Explanation:

Substitutes' goods are products that can be consumed in place of each other.  If one product is missing, consumers will be ready and willing to buy its substitute. An increase or fall in the price of a good or services will cause the demand for its substitute to move in the opposite direction.

Equilibrium quantity is when supply matches the demand. If the price of Tuna fish decreases, its demand will increase as more customers will afford it. Tuna and chicken are substitutes, should the price of Tuna decrease,  customers will prefer to consume Tuna over chicken.  Consequently, the demand for chicken will reduce w leading to a decrease in its price.

6 0
3 years ago
Delta Company sells bells to customers for $1 each. The variable cost to manufacture the bells is 10 cents. If the rattle depart
kherson [118]

Answer:

C. $0.11

Explanation:

When there is excess capacity and there are no incremental fixed costs the break even transfer price would be the marginal cost of production. This is the least transfer price the Bells can sell to Rattle without making a loss. The most likely transfer price then would be $0.11 which allows the bells to cover their costs and also make 1 cent in profits. Option A, B and D would all be making losses where as Option E and F are two steep a price and may be unprofitable for rattle.

Hope that helps.

3 0
3 years ago
"The chief advantage of the _______ is that it allows the firm to specialize in satisfying the needs and characteristics of a sp
Veseljchak [2.6K]

Answer: Option D

Explanation: In simple words, targeting strategy refers to the strategy in which company selects their potential customers. These companies directs their marketing strategy to impact and impress only those selected customer group.

These organisations usually end up being the pioneer of their industry, specializing in that market segment. For example- roles targets the elite class of the society for their products.

3 0
3 years ago
Management is a process designed to achieve an organization's objectives by using its resources ____________ (accomplishing the
Kay [80]

Answer: The correct answer is d). efficiently, effectively

Explanation: Efficiently means accomplishing the objectives with a minimum of resources while Effective means having the intended result.

Management is a critical process in any organisation. It prevents wastage and ensures that the goal of the organisation is met appropriately.

3 0
3 years ago
Read 2 more answers
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