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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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Answer:

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Cost of goods sold is Cost of goods available for sale less ending merchandise inventory. Ending merchandise understated by $300 means ending merchandise was accounted $300 less. So, $300 need to be added to ending merchandise. No ending merchandise is $2,300 (2,000 + 300)

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The weighted average cost of capital(WACC) of a firm is the average cost of finance incurred by the firm on all its sources of finance.

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By weights, I mean the percentage of funding each source contributes to the total finance available at the firm's disposal.

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Find further guidance on weighted average cost of capital's computation in the link below:

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