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
PSYCHO15rus [73]
3 years ago
5

On January 1, 2021, Nana Company paid $100,000 for 6,200 shares of Papa Company common stock. The ownership in Papa Company is 1

0%. Nana Company does not have significant influence over Papa Company. Papa reported net income of $50,000 for the year ended December 31, 2021. The fair value of the Papa stock on that date was $60 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2021?
Business
1 answer:
anygoal [31]3 years ago
6 0

Answer:

$372,000

Explanation:

The computation of the amount to be reported in the balance sheet is shown below:

= Number of shares of common stock × fair value of the Papa stock on that date per share

= 6,200 shares × $60

= $372,000

Since in the question it is given that the Nana company does not have significant influence over Papa Company which means that the net income, retained earning, dividend is not be considered.

Therefore, the investment should be reported at the fair value

You might be interested in
Best Appliances owns​ 90% of the voting stock of​ Wratchet, Inc. Which of the following is​ true? A. Wratchet would be considere
djverab [1.8K]

Answer:

B. Best would be considered the parent entity.

Explanation:

When a company owns another companies stock of 90% or more it would be considered as parent entity. The parent entity can control the the subsidiary. The financial statements will be consolidated into parents companies accounts.

6 0
3 years ago
Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift a. demand,
Sedbober [7]

Answer:

b. supply, raising the equilibrium price and lowering the equilibrium quantity in the market for artificially sweetened beverages.

Explanation:

In the case when the government impose the tax of 20% on sweetened beverages so here the price should be increased but at the same time the quantity is decreased as the supply curve shifted to the leftward where the demand curve is not impacted at all due to this things the price increased and the demand is decreased

Therefore the option b is correct

4 0
3 years ago
Born and raised in India, Rashmi has always enjoyed Indian cooking. As a matter of fact, cooking was her passion and she always
My name is Ann [436]

Answer:

The answer is: Modify

Explanation:

In Rashmi´s catering business, modify refers to changing the process in order to solve problems.

Rashmi must change her recipes so that the food she sells isn´t too spicy for his potential customers. Indian food is famous for being extra spicy, but American food isn´t so she must modify it to satisfy American taste.    

3 0
4 years ago
In the past few years, the demand for donuts has decreased. this would be illustrated by a change from?
zepelin [54]

The decrease in demand would be illustrated by a change from A to C.

<h3>What will be the change?</h3>

The demand curve is a downward sloping curve that shows the relationship between price and the quantity demanded. There is a negative relationship between price and quantity demanded.

A change in demand is caused by other factors other than the price of the good. Other factors include a change in income, a change in consumer taste or a change in the price of substitute goods.

When there is a change in demand, the demand curve would shift either to the right or to the left. When demand decreases, the demand curve would shift to the left. When demand increases, the demand curve would shift to the right.

Since, the demand for donuts have decreased, the demand curve would shift to the left. This would be a shift from A to C.

Please find attached the complete question. To learn more about the demand curve, please check: brainly.com/question/25140811

#SPJ1

3 0
1 year ago
An investor has $50,000 in cash to put a $5,000 down payment on 10 different homes valued at $50,000 each and will finance the r
scZoUnD [109]

Answer:

d. leverage

Explanation:

Leverage -

It is a type of investment strategy , where the borrowed money is used .

It is the method by which the firm or an organisation is expanded by using the borrowed money as the capital and funding , is referred to as leverage  .

Hence , from the given scenario of the question,

The person uses borrowed money to increase the potential return of an investment .

Hence , from the question,

The correct term is leverage .

3 0
3 years ago
Other questions:
  • Hannah Li wants to quit her job as a legal secretary and start her own small business. She knows that she will be successful if
    6·1 answer
  • Barney Corporation recognized a $100 million preferred stock balance on 12/31/2019.
    7·1 answer
  • Suppose, due to the effects of a military conflict that has ended, that a country experiences a large reduction in its capital s
    10·1 answer
  • A storage tank acquired at the beginning of the fiscal year at a cost of $90,000 has an estimated residual value of $12,000 and
    14·1 answer
  • An agent does not like another broker and refuses to present his offers. The agent's employing broker notices he does a good job
    8·1 answer
  • 3. Considered the back office", Involves behind the scenes paperwork
    6·1 answer
  • how are all of your days so far i need someone to talk to btw i have a strict mom so if i dont answer stay there cuz she does no
    6·2 answers
  • Based on the information provided, what ethical standards is Impossible Foods demonstrating with regard to its employees
    5·1 answer
  • gemma corporation sells a single product for $40 per unit. last year, the company's sales revenue was $2,950,000 and its net ope
    13·1 answer
  • A(n) ________ strategy is the approach a functional area takes to achieve corporate and business unit objectives and strategies
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!