Answer:
a. $80,000
Explanation:
In this question we are only concerned about the net income reported by Dodge on its income statement.
First we need to calculate ownership % in 2012 = 15% + 25% = 40%
Net income of 2012 (Gates) = $ 200000
hence Dodge will report net income of 40% of 200000 = $80000
Hence the correct answer is A
Note: Dividends will not affect the investors net income but it would reduce the investment value of Gate reported by Dodge (as it is seen as a return on investment)
Answer:
Explanation:
ed= 2 , Price increase by 5%.
Elasticity of Demand = % Change in Quantity demanded/ % change in price
% change in quantity demanded = 2*5%=10%
Since, the elasticity > 1 and price has decreased, the total revenue will decrease. The impact of price change on Total revenue is based on the relationship between elasticity of demand and Total revenue.
Thus, there will be 10% fall
Answer:
The journal entry that Teal would make to record payment of this note would include a credit to: c) Interest revenue for $200
Explanation:
On March 14, Teal Co. accepted a 120 days, 6% note in the amount of $10,000 from AZC Co.
The entry:
Debit Note receivable $10,000
Credit Accounts receivable $10,000
Assuming that a year of calculating interest has 360 days. On the due date of the note, AZC honors the note and pays in full, include the interest of 120 days:
$10,000 x 6% x 120/360 = $200
The entry that Teal would make:
Debit Cash $10,200
Credit Note receivable $10,000
Credit Interest revenue $200
Answer: Using the discounted dividend model to estimate the value of the company’s stock, I will choose to evaluate a company that is not expected to distribute any earnings to its stockholders for the next few years.
