What is a marginal cost?

On July 1, 2021, Tremen Corporation acquired 25% of the shares of Delany Company. Tremen paid $3,090,000 for the investment, and

ankoles [38]

Answer:

The tremen's investment in Delany company is $3,162,500

Explanation:

Tremen's investment in Delany Company account would be as follows at year ended 31st December 2021

Initial investment value $3,090,000

Delany's net income $1,300,000

Dividends paid(4*$180,000) ($720,000)

Profits after dividends $580,000

Tremen's share 25%*$580,000*6/12 $72,500

year end balance of Tremen's investment $3,162,500

First of all, the total dividends is taken away from net income and a portion of the net income after dividend payment is added to Tremen's investment which reflects its percentage shareholding and the duration of investment of six months

8 0

3 years ago

Creek Corporation had $210,000 of active income, $45,000 of portfolio income, and a $230,000 passive activity loss during the ye

Mekhanik [1.2K]

Answer:

given statement is false

Explanation:

given data

active income = $210,000

portfolio income = $45,000

passive activity loss = $230,000

deduct passive activity loss = $230,000

solution

as per Topic Passive Activities

we know that Losses and Credits in IRS state here that Loss from passive activity is not allowed for current year

and here this loss will be carry forward to the next taxable year

as a similar rule is applicable to give credits from passive activities

so that given statement is false

7 0

3 years ago

Identify whether each example in below is a programmed or nonprogrammed decision.

insens350 [35]

Answer:

The answers are:

1. nonprogrammed decision

2. programmed decision

3. nonprogrammed decision

4. programmed decision

Explanation:

Programmed decisions are decisions for which the decision maker has developed certain set of guiding rules for, over time, as a result of repetition. Here the results can be predicted with a reasonable degree of accuracy, because the situations surrounding the circumstances are well known. In our example, feeding the puppy overtime has become routine, hence it is a programmed decision, also, the choice of tea at Starbucks is a programmed decision because you know what to expect and that is because you have tried the other varieties and come to a conclusion on the choices to be made which is well understood.

On the contrary, a nonprogrammed or nonroutine decision is a decision that is based on circumstances that are not entirely predictable to a reasonable extent. The structure of the circumstances surrounding the decision to be made is not well understood. There are so many "what ifs". These decisions can be said to be novel, and they are not routine. In our example, the choice of the constructor to use for your kitchen design and the decision by the accounting firm on whether to renew the lease or relocate are nonprogrammed because these decisions are not everyday decisions and the decision makers are not certain what the outcomes will be depending on the choices they make, if they will eventually regret it or not.

5 0

4 years ago

EarthWear's income before taxes is $36 million (rounded). Assume that the auditors have decided that 5 percent of this benchmark

ratelena [41]

Answer: $900000

Explanation:

The second step in any substantive analytical procedures decision process is to determine or calculate a tolerable difference. Since the expectation developed by the auditor will slightly be identical to the client's recorded amount, the auditor must make a decision about the amount of difference that would require further investigation. The size of the tolerable difference relies on the significance of the account, the desired degree of reliance on the analytical procedure, the level of disaggregation in the amount being tested, and the precision of the expectation.

In the above statement,

The tolerable misstatement= 50%

Income before taxes= $36million

5% benchmark appropriate for planning materiality.

Therefore,

The tolerable difference for the analytical procedure:

$36million × 0.05 × 0.5

= $900000

3 0

3 years ago

How to properly get rid of a ouija board bought from a yard sale?

irina [24]

Just toss it out and Rebuke it in Jesus name

4 0

4 years ago

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What is a marginal cost?​

What is a marginal cost?