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tresset_1 [31]
3 years ago
10

On January 1, 2016, American Corporation purchased 30% of the outstanding voting shares of Short Supplies common stock for $240,

000 cash. On that date, Short's book value and fair value were both $800,000. The equity method is deemed appropriate for this investment. Short's net income reported on December 31, 2016, was $76,000. During 2016, Short also paid cash dividends in the amount of $22,000.
Required:
Compute the amount that would be reported for the investment on American Corporation's financial statements at December 31, 2016
Business
1 answer:
umka2103 [35]3 years ago
8 0

Answer:

$256,200

Step by Step Explanation:

Original Investment 240,000

Share of net income

30%of 76,000 = 22,800

Less cash dividend

30%of 22,000 = (6,600)

Balance, December 31, 2016 $256,200

240,000+ 22,800= 262,800

262,800 - 6,600= 256,200

Therefore the amount that would be reported for the investment on American Corporation's financial statements at December 31, 2016 is $256,200

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Beginning inventory for the month contained 2,000 units that were 70 percent complete with respect to materials. During the mont
pickupchik [31]

Answer:

a. 60,600

Explanation:

Given,

The number of units completed and transferred out = 6000,

Ending inventory = 3,000,

Percentage of completed units with respect to materials = 20%,

So, the additional completed units = 20% of 3000

=\frac{20\times 3000}{100}

=\frac{60000}{100}

= 600

Hence, the weighted average equivalent units of production for materials for the month = 60,000 + 600

= 60, 600

OPTION A would be correct.

6 0
3 years ago
After posting the entries to close all revenue and expense accounts, the Income Summary account of Cleaver Auto Services has a $
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Answer:

INCORRECT.

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In the given case clever auto services has debit balance of $5,300 i,e it implies that clever auto services has loss .

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3 0
3 years ago
Match the following terms with their definitions. Salary, rewards, net pay, occupation, costs, benefit, deduction1. a fixed amou
Katena32 [7]

Answer:

1. A fixed amount of money periodically paid to a person for work – Salary

2. The price paid to acquire, produce, or accomplish something – costs

3. The portion of the wages that the employee actually gets to take home - net pay

4. Perks provided by your employer – benefit

5. Something that causes or increases personal satisfaction – rewards

6. An amount that is subtracted from your paycheck employee – deduction

7. A person's usual work or business; a way of earning a living - occupation

Explanation:

1. The salary is defined as the amount received by a person for work, this income does not include any extra benefit. to be considered as a salary it has to be paid periodically.

2. The cost is the expense caused for the production of a product, in the case of a service is the cost of offering it. includes direct and indirect labor force cost, amortized costs of the machinery and supplies (for products).

3. The net pay is the salary amount paid to an employee after the deduction of any amount legally recognized, it may include taxes and other items.

4. The benefits are extra gains that an employer may give to workers, different from the salary amount, it may include bonus or specific medical insurance advantages.

5. The rewards are non-usual prizes or recognitions received by people due to a personal or labor goal.

6. The deduction is al legal reduction done by a company in the payment of an employee.

7. The occupation is the activity that a person develops to obtain living resources, it can include personal business or employment.

4 0
3 years ago
How many of Amway distributors make money
satela [25.4K]
1.5 million distributors
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4. Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. TIP
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The most important factor in the work process or industry is to retain the interest of the employee. And to retain them, their salary or profit must be adjusted to the best value. Unless the employee does not do his job properly, employees must receive bonuses or benefits to ensure them to stay in the company. It will actually make them stay longer, make them feel important and reduce costs for hiring new employees.

6 0
3 years ago
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