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Inessa [10]
2 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]2 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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The public report that a developer must provide when offering subdivided lands for sale is provided by which agency?
e-lub [12.9K]

The Subdivided Lands Law requires a subdivision developer to obtain a public report from the Real Estate Commissioner before offering any lots for sale.

A Commissioner is basically a member of the Commissioner or a person to whom duties are delegated. In practice, the title of commissioner has evolved to include various senior officials, often on specific committees.

Persons with Assignments: Etc. a: Committee members. b: A representative of a government agency of a district, state, or other entity, often having both judicial and executive powers. c: Officer in charge of a department or office of public service.

If the date of this order is more than one year before he and the agent ex officio change the order. An order by an attorney to refuse to interfere shall not be considered an order prejudicial to a judge.

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7 0
1 year ago
Assume the real rate of interest is 3.00% and the inflation rate is 6.00%. What is the value today of receiving 14,488.00 in 13.
OverLord2011 [107]

Answer:

Present Value= $15,874.25

Explanation:

Giving the following information:

Assume the real rate of interest is 3.00% and the inflation rate is 6.00%. What is the value today of receiving 14,488.00 in 13.00 years?

<u>This is a rare case where the interest rate is negative:</u>

Interest rate= 0.03 - 0.06= -0.03

Having said this, the present value is higher than the final value:

PV= FV/ (1+i)^n

PV= 14,488/ 0.97^3= $15,874.25

6 0
3 years ago
A company is doing business with a German entity and, as a result, has entered into a forward exchange contract on December 18,
elena-14-01-66 [18.8K]

Answer:

$18,000 gain

Explanation:

Calculation for the amount of foreign currency gain or loss that should be recognized in income on December 31, year 2

Since Forward rate was given as:

December 18, year 2 $1.25

December 31, year 2 $1.31

Which means we have to Deduct the forward rate of December 18, year 2 which is $1.25 from the forward rate of December 31, year 2 which is $1.31 and then multiply it by the amount in which forward rate was purchased which is 300,000 Euro which will in turn give us the amount of foreign currency gain that should be recognized in income on December 31, year 2

Now let calculate

Forward rate December 18, year 2 $1.25

Less Forward rate December 31, year 2 $1.31

=$0.06 gain per Euro

Now let calculate for the amount of foreign currency gain that should be recognized in income on December 31, year 2

Hence,

Forward rate purchased amount 300,000 Euro ×$0.06 gain per Euro

=$18,000 gain

Therefore the amount of foreign currency gain that should be recognized in income on December 31, year 2 will be $18,000 gain.

6 0
3 years ago
A steel manufacturing firm with about 1,000 employees operates in an environment that is simple and integrated (it makes a small
WINSTONCH [101]

Answer:

Organic structure.

Explanation:

Organic structure: It is defined as flat organizational structure as it does not follow normal hierarchical structure, it is more of a decentralized structure with a lesser layer of management at every level, where more information is shared among employee and each department co-operate with other departments, which helps the organization to adapt well with the changes. Employees have the opportunity to participate in the decision-making process of the organization.

In the given case, Steel manufacturing firm are following an environment that is simple and integrated but also dynamic and hostile, which is a perfect organic structure.

4 0
3 years ago
If real gdp is $200 billion, full employment gdp is $400 billion, and the marginal propensity to consume is 0.75, then congress
madreJ [45]

If real GDP is $200 billion, full employment GDP is $400 billion, and the marginal propensity to consume is 0.75, then Congress should-----

increase government purchases by spending by $50 billion.

What is marginal propensity?

In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.

Full employment:

is an economic situation in which all available labor resources are being used in the most efficient way possible. Full employment embodies the highest amount of skilled and unskilled labor that can be employed within an economy at any given time.

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3 0
1 year ago
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