1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
What is the npv of the following cash flows if the required rate of return is 0.14? year 0 1 2 3 4 cf -4,506 3,099 531 3,560 2,7
aksik [14]

-$177.62, CF0 = -28900, CO1 = 12,450 FO1 = 1, CO2 = 19,630 FO2 = 1, CO3 = 2,750 FO3 = 1I = 12, CPT NPV = -177.62

In practical terms, it is a method of calculating your return on investment, or ROI, for a project or expenditure. Net present value may be a tool of Capital budgeting to research the profitability of a project or investment.

it's calculated by taking the difference between the current value of money inflows and present value of money outflows over a period of your time. Put differently, it's the compound annual return an investor expects to earn (or actually earned) over the lifetime of an investment.

for instance, if a security offers a series of money flows with an NPV of $50,000 and an investor pays exactly $50,000 for it, then the investor's NPV is $0. Net present value uses discounted cash flows within the analysis, which makes the web present value more precise than of any of the capital budgeting methods because it considers both the danger and time variables.

A higher NPV doesn't necessarily mean a far better investment. If there are two investments or projects up for decision, and one project is larger in scale, the NPV are higher for that project as NPV is reported in dollars and a bigger outlay will lead to a bigger number. Net present value (NPV) is that the difference between this value of money inflows and also the present value of money outflows over a period of your time.

learn more about NPV: brainly.com/question/18848923    

#SPJ4

6 0
2 years ago
Mike wants to purchase an $11,350 car with a loan from a credit union that requires a 20% down payment. what amount will Mike bo
djyliett [7]
He will borrow 80% of the cost of the car.
80/100*11350= <span>$ 9080</span> 
4 0
3 years ago
Which steps should marketers follow when using the objective-and-task method to determine a budget?
levacccp [35]

The steps that marketers should follow are identify cost of necessary communications, compare budget to that of competitors and establish set of communication objectives.

<h3>What is communication?</h3>

The traditional definition of communication is the transfer of information. The phrase could be used to describe the transmission's message or the field of study that looks into it. There are several disagreements over the precise definition of it. This justification suggests that one definition of communication might be the process of mutual understanding being established between things or groups through the use of signs, symbols, and semiotic customs. It's important to distinguish between non-verbal communication, which can include things like gestures and facial expressions, and verbal communication, which happens through the use of words. Models of communication provide a detailed description of the numerous stages and parties involved in communication. Numerous academic fields focus on communication. Information theory examines how information is generally quantified, stored, and transmitted.

To learn more about communication, visit:

brainly.com/question/29559096

#SPJ4

8 0
1 year ago
The business judgment rule is important because it reflects the principle that ________, not _________, have the greatest latitu
Shalnov [3]

Answer: d. company directors; shareholders

Explanation: The conduction and management of a business usually involve making controversial decisions or taking actions that might put the business at risk. In a general sense, greater profits calls for greater risks. As such, the business judgement rule states that the board of directors should be allowed to make such decisions without fear of prosecution by shareholders who might object while acknowledging that managers are not capable of making optimal decisions at all times. The rule therefore aid in protecting a business's board of directors from slight legal allegations about the conduct of business. It is thus important because it reflects the principle that company directors, not shareholders, have the greatest latitude to run companies.

6 0
3 years ago
The marketing and administrative expense budget of Frazier Corporation is based on budgeted unit sales, which are 5,500 units fo
LenaWriter [7]

Answer: b. $106,700

Explanation:

The marketing and administrative expense budget is based on budgeted unit sales, which are 5,500 units for June.

The variable marketing and administrative expense is $1.00 per unit. Which is 5,500 units x $1.00 = $5,500.

The budgeted fixed marketing and administrative expense is $101,200.

To get the cash disbursements for marketing and administrative expenses on the June marketing and administrative expense budget should be Variable costs plus fixed costs.

= $5,500 + $101,200

= $106, 700

4 0
3 years ago
Other questions:
  • Cork Oak Corporation purchased a heavy-duty truck (not considered a passenger automobile for purposes of the listed property and
    10·1 answer
  • If an economy’s GDP falls, then it must be the case that the economy’s Group of answer choices income falls and saving rises. in
    8·1 answer
  • Patton has acquired several other companies. Assume that Patton purchased Kate for $ 6 comma 000 comma 000 cash. The book value
    10·1 answer
  • Novak Corporation is preparing its 2014 statement of cash flows, using the indirect method. Presented below is a list of items t
    15·1 answer
  • Toby purchased a 20-year par value bond with semiannual coupons at a nominal annual rate of 8% convertible semiannually at a pri
    5·1 answer
  • Wolverine, Inc. began operations on January 1 of the current year with a $12,400 cash balance. 45% of sales are collected in the
    15·1 answer
  • Ano ang kahalagahan ng pagbubungkal ng lupa kung ito ay mamasa-masa lamang​
    15·1 answer
  • A marketer is keeping track of the revenue generated by his campaign. He wants to
    15·1 answer
  • How much do actors make in a year?
    13·2 answers
  • You have hired 10 new temporary workers who will be with the company for 3 months. how can you make sure that these users can on
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!