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Ket [755]
3 years ago
15

Company A accounts for its investment in Company B under the equity method. Company A carried the Company B investment at $150,0

00 and $165,000 at December 31, 2020, and December 31, 2021, respectively. During 2021 Company B recognized $80,000 of net income and paid dividends of $30,000. Assuming that Company A owned the same percentage of Company B throughout 2021, its percentage ownership must have been:
Business
1 answer:
Gnoma [55]3 years ago
3 0

Answer:

30%

Explanation:

Calculation for its percentage ownership

Percentage of ownership=($80,000 - $30,000)/$165,000

Percentage of ownership=$50,000/$165,000

Percentage of ownership = 30%

Therefore Assuming that Company A owned the same percentage of Company B throughout 2021, its percentage ownership must have been:30%

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Specialization of labor results in the production of large quantities of a product.a. trueb. false
il63 [147K]

Answer: True

Explanation: Specialisation of labour in production is the process of classifying People who have different skills, talents, and interests into groups so they will be better at what they do.

Specialisation in certain tasks often aid workers to produce more quickly and with higher quality especially in assembly line laborers.

Specialization also allows businesses to take advantage of economies of scale, which means that for many goods, as the level of production increases, the average cost of producing each individual unit declines.

The division and specialization of labor has been a force against the problem of scarcity as more product will be produced as against when there is not specialisation in division of labour.

6 0
3 years ago
What Is margin of safety?
skelet666 [1.2K]

Answer:

Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. ... Alternatively, in accounting, the margin of safety, or safety margin, refers to the difference between actual sales and break-even sales

5 0
3 years ago
Jordon and Heidi share income equally. For the current year, the partnership net income is $40,000. Jordon made withdrawals of $
aleksley [76]

Answer:

a.$46,000

Explanation:

A partner ship account records the transactions related to partnership. All transaction of withdrawal, Profit allocation etc. are recorded to determine the closing balance of each partner.

Ending Capital Balance = Beginning Capital balance + Income allocation for the year - withdrawals

Jordon's Ending Capital Balance = $40,000 + ( $40,000 x 0.5 ) - $14,000

Jordon's Ending Capital Balance = $40,000 + $20,000 - $14,000

Jordon's Ending Capital Balance = $46,000

3 0
3 years ago
A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit purchases. An investment is made via the
Oxana [17]

Answer:

A. $50 increase

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

The change in net cash provided by operation is shown below:

= Investment made - purchased goods on credit - paid amount

= $300 - $150 - $100

= $50

4 0
3 years ago
Santana, Inc. reports the following liabilities (in thousands) on its January 31, 2014, balance sheet and notes to the financial
deff fn [24]

Answer:

$22,577.1

Explanation:

SANTANA INC.Balance Sheet (Partial)January 31, 2014

Current liabilitiesNotes payable $2,563.6

Accounts payable $4,263.9

Current portion of mortgage payable $1992.2

Warranty liability $1,417.3

Unearned rent revenue $1,058.1

Salaries and wages payable $858.1

Income taxes payable $265.2

Total current liabilities $12,418.4

Long-term liabilitiesMortgage payable$6,746.7

Bonds payable $1,961.2

Accrued pension liability$1,115.2

Notes payable $335.6

Total long-term liabilities $10,158.7

Total liabilities $22,577.1

($12,418.4 +$10,158.7)

3 0
3 years ago
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