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trasher [3.6K]
2 years ago
7

On January 1, 20X7, Poke Corporation acquired 25 percent of the outstanding shares of Shove Corporation for $100,000 cash. Shove

Company reported net income of $75,000 and paid dividends of $30,000 for both 20X7 and 20X8. The fair value of shares held by Poke was $110,000 and $105,000 on December 31, 20X7 and 20X8 respectively. Based on the preceding information, what amount will be reported by Poke as income from its investment in Shove for 20X8, if it used the equity method of accounting
Business
1 answer:
maria [59]2 years ago
4 0

Answer:

$18,750

Explanation:

Income from investment = 25% * $75,000

Income from investment = 0.25 * $75,000

Income from investment = $18,750

The amount that will be reported by Poke as income from its investment in Shove for 20X8, if it used the equity method of accounting is $18,750

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A country finds itself in the following situation: a government budget surplus of $900; total domestic savings of $200, and tota
sweet [91]

Answer:

The current account balance goes from a $200 deficit, to a $100 surplus.

Explanation:

There are several ways to write the national saving and investment identity. We can choose to write it in this way:

(X - M) = S + (T - G) - I

Because the equation is an identity, we know that the left side of it (X - M) will always be equal to the right side (S + (T - G) - I), on which we wil be focusing.

With the initial values provided by the question, we have the following situation:

(X - M) = $200 + $900 - $1,300

(X - M) = $1,100 - $1,300

(X - M) = -$200

Thus, we have a deficit of $200

If investment decreases by $300, while the government budget, and savings remain the same, the situation changes:

(X - M) = $200 + $900 - $1,000

(X - M) = $1,100 - $1,000

(X - M) = $100

So now we have a surplus of $100

5 0
3 years ago
Sheridan Company receives a $14000, 3-month, 8% promissory note from Carla Vista Company in settlement of an open accounts recei
Pie

Answer and Explanation:

The journal entry to record while receiving the note is shown below:

Notes receivable  Dr. $14,000

          To Accounts receivable $14,000

(Being receiving of the note is recorded)

Here the note receivable is debited as it increased the assets and credited the account receivable as it decreased the assets

The same is to be considered

3 0
3 years ago
Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the N
Andrew [12]

Answer:

Alphabet stock; Acme Investing; New York Stock Exchange.

Explanation:

Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the New York Stock Exchange. In this transaction, Alphabet stock is a financial instrument, Acme Investing is a financial institution, and New York Stock Exchange represents a financial market.

Financial instruments can be defined as assets which are having monetary value or used to record a monetary transaction. Financial instruments are generally classified on the basis of their risks, maturity, issuers etc. Some examples of financial instruments are stocks, treasury bills, commercial paper, money market mutual fund, certificate of deposits, corporate bonds etc. The market where these financial instruments (securities and derivatives) are being traded at a low transaction rate is referred to as the financial market.

Furthermore, financial institutions can be defined as a business firm or company that is involved in the business of trading financial instruments.

6 0
3 years ago
How can money in a savings account grow
Masteriza [31]
The bank puts interest in your account because they take sum of it to loan to ppl and it’s goes through a lot and comes back to your account and then sum
7 0
3 years ago
Why do we need to do school when at home bc this is supposed to be my vaca...
QveST [7]

Answer:

because it's only April

Explanation:

school doen't end until may

5 0
3 years ago
Read 2 more answers
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