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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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3 years ago
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The Overland Company is preparing its cash budget for the month of June. The following information is available concerning its a
Alex777 [14]

Answer:

total estimated cash collections = $300,050

Explanation:

estimated collections during June:

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collections from credit sales during June = $332,000 x 25% = $83,000

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3 years ago
How long does it take to become a​ millionaire? A ​$500,000 investment will hit​ $1 million in 39 years at an annual interest ra
Solnce55 [7]

Answer:

It will take 30.10 year

Explanation:

We have given initial investment $500000

Future value = $ 1 million = $1000000

Rate of interest r = 1.79 %

We have to find the time taken to reach the amount $1000000

We know that future value is equal to A=P(!+\frac{r}{100})^n

1000000=500000(!+\frac{1.79}{100})^n

2=(1.0179)^n

Taking log both side

log2=nlog1.0179

n×0.0077 = 0.3010

n = 39.09 year

Now in second case rate of interest

r = 2.34 %

So 1000000=500000(1+\frac{2.34}{100})^n

2=(1+\frac{2.34}{100})^n

2=1.0234^n

taking log both side

log 2 = n log 1.0234

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n = 30.10 year

8 0
3 years ago
__________ manages the movement of raw materials, parts, work in progress, finished goods and related information throughout the
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3 years ago
Cobe Company has already manufactured 23,000 units of Product A at a cost of $25 per unit. The 23,000 units can be sold at this
zysi [14]

Answer:

It is more profitable to continue processing the units.

Explanation:

Giving the following information:

Product A:

Units= 23,000

Selling price= $420,000

Continue processing:

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Product C= 11,900 units sold for $52 each

Total cost= $280,000

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Option 1:

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Option 2:

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Effect on income= $974,800

It is more profitable to continue processing the units.

7 0
3 years ago
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