All categories

2 years ago

On January 2, 20Y4, Whitworth Company acquired 40% of the

Business

1 answer:

Gelneren [198K]2 years ago

6 0

Answer:

Journal entries needed for:

a. Purchase of stock

b. Share of Aloof income

c. Dividend

d. Sale of Aloof company stock

a. Purchase of stock

Date Account Title Debit Credit

Jan 2, 20Y4 Investment in Aloof company $340,000

stock

Cash $340,000

b. Share of Aloof income

Date Account Title Debit Credit

Dec 31, 2024 Investment in Aloof company $72,000

stock

Income of Aloof Company $72,000

Working:

= 40% * 180,000 income

= $72,000

c. Dividend

Date Account Title Debit Credit

Dec 31, 2024 Cash $4,000

Investment in Aloof company $4,000

stock

Working:

= 40% * 10,000 dividend

= $4,000

d. Sale of stock

Date Account Title Debit Credit

Dec 31, 2024 Cash $405,000

Loss on sales of Aloof $3,000

company stock

Investment in Aloof company $408,000

stock

Working:

Value of stock = Purchase price + share of Aloof income - Share of dividend

= 340,000 + 72,000 - 4,000

= $408,000

You might be interested in

These too. Again I will post more

Varvara68 [4.7K]

The answer is D

hope it helps :P

7 0

2 years ago

Suppose you sell a fixed asset for $99,000 when its book value is $75,000. if your company's marginal tax rate is 39 percent, wh

strojnjashka [21]

Determining Depreciation Recapture.

Sale Value = $99,000

Less: Adjusted basis(book value) = ($75,000)

Depreciation recapture = $24,000

So Depreciation recapture = $24,000

The marginal tax rate is the amount of additional tax paid for each additional dollar earned in income. The average tax rate is the total tax paid divided by total income. A marginal tax rate of 10% means that 10 cents from the next dollar you earn will be tax deductible.

In taxation, a tax rate is a rate at which a company or individual is taxed. There are several ways to express tax rates, including statutory, average, marginal, and effective. These tax rates can also be presented using different definitions (inclusive and exclusive) that apply to the tax base.

Learn more about marginal tax here

brainly.com/question/14145043

#SPJ4

3 0

1 year ago

Developing the cash flow for each alternative in a study is a pivotal, and usually the most difficult, step in the engineering e

Volgvan

Answer:

The concept of equivalence, also known as economic equivalence, describes the reduction of a series of cash inflows (benefits) and cash outflows (costs) to a single point in time, using a single interest rate, which enables the cash flows to be compared or equated. This implies that while the amounts and timing of the cash flows (both inflows and outflows) may differ, an appropriate interest rate, factoring in the time value of money, will cause one set to be equal to the other. Therefore, to establish economic equivalence, series of cash flows that occur at different points in time must be equalized using a single interest rate through present value calculations.

Explanation:

The concept of equivalence describes a combination of a single interest rate and the idea of the time value of money. This combination helps to determine the different amounts of money at different points in time that are equal in economic value, such that a person would not hesitate to trade one for the other.

For example, if the interest rate is 10% in Year 1 and in Year 2 and you are to be paid $1,000 in Year 1, it will not make any difference to you if you are paid $1,100 in Year 2. This is because, given the prevailing interest rate of 10%, the value you receive in Year 1 and Year 2 are equivalent.

3 0

3 years ago

this flight is operated by a partner airline united seat selection and changes are not available for this flight at this time. y

-Dominant- [34]

Partner Airline
Partnerships between or among airlines are known as airline alliances. Through these partnerships, airlines can pool resources, add or expand partner routes, and even provide the opportunity for customers to accrue and redeem miles through one another's rewards systems.

Main Content
For the spring of 2020, I'm looking into multi-city flights from Seattle to Rome and Rome to Seattle. On Lufthansa, premium economy is not an option for the dates I'm considering. However, I can discover routes flown by Lufthansa on the United website and have the option of choosing premium economy. However, I am unable to choose seats on the United website. It informs me "On this flight, there are no available advance seat assignments on united.com. You can go to the operating airline's website for more information after completing your purchase." I am less than certain that we will truly enter premium economy and may instead wind up in ordinary economy as a result of this. Please share your insights into this kind of reservation! Thanks!

to learn more about Partner Airline
brainly.com/question/15058902
#SPJ4

3 0

1 year ago

Price Manufacturing assigns overhead based on machine hours. The Milling Department logs 1,800 machine hours and Cutting Departm

kifflom [539]

Answer and Explanation:

The Journal entry is shown below:-

Work in progress Dr, $24,000

To Manufacturing Overhead $24,000

(Being the overhead assigned is recorded)

For recording this we debited the work in process as it increased the assets and credited the manufacturing overhead for assigning the overhead

Working note

Overhead amount = (Milling Department + Cutting department) × Overhead rate

= (1,800 + 3,000) × $5

= $4,800 × $5

= $24,000

5 0

3 years ago