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nika2105 [10]
3 years ago
12

Harrison Company owns 20,000 of the 50,000 outstanding shares of Taylor, Inc. common stock. During 2018, Taylor earns $1,200,000

and pays cash dividends of $960,000. Harrison should report investment revenue for 2018 of:
Group of answer choices:
A. $96,000
B. $480,000.
C. $0
D. $384,000.
Business
1 answer:
Y_Kistochka [10]3 years ago
3 0

Answer:

B. $480,000

Explanation:

The computation of investment revenue is shown below:

= Earnings × own shares ÷ outstanding shares

=- $1,200,000 × 20,000 shares ÷ 50,000 shares

= $480,000

Simply we do the proportion depend on earnings and based on the number of shares so that the correct amount can come.

All other information which is given is not relevant. Hence, ignored it

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Answer:

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Explanation:

Although there are different evaluation standards for the concept of allocation efficiency, the basic principle states that, in any economic system, the different options in the allocation of resources will produce both "winners" and "losers" in relation to the choice being evaluated. The principles of rational choice theory, individual maximization, utilitarianism and market theory assume, in addition, that the results for both winners and losers can be identified, compared and measured.

From these basic premises, the objective of maximizing the efficiency in the allocation can be defined according to some neutral principle in which some options are considered “objectively better than others”. For example, an economist might say that a change in policy increases the efficiency of allocation, as long as those who benefit from the change (winners) earn more than the losers lose.

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NOTE: If you need to extend the explanation given, you can make a comment or add a new question. I will be very pleased to help you.

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