Another name for population groups is ____

Rogers, Inc., acquires 15% of Procter Corporation on January 1, 2020, for $70,000. During 2020, Procter reported net income of $

ioda

Answer:

a) Investment Value as at December 31, 2020 / Jan 1, 2021 $64,000

b) Value of Equity Investment Dec 31, 2021 $491, 000

Explanation:

First Part is to calculate the January 1, 2021 entry to adjust the Equity account based on additional acquisition on that date

It should be noted that the investment balance as at 31st December 2020, will also be the value of the investment balance for the start of the next year January 1st 2021.

Therefore,

Step 1: Calculate the Investment Balance as at 31st Dec, 2020

Acquisition Cost of 15% Investment (Procter Corporation Jan 1) $70,000

Subtract: The dividend received 31st Dec, 2020 ($40,000 x .15) ($6,000)

Investment Value as at December 31, 2020 $64,000

Step 2: Calculate the Investment Gain (Equity Investment)

The formula= Market value of Equity (year end) - Carrying Value (calculated in step 1)

= $68,000 - $64,000

= $4,000

Step 3: The journal entry to adjust the equity investment account

Date Particulars Debit Credit

Dec, 31, 2020 Equity Investment $4,000

Gain Unrealized on Equity Investment $4,000

being the journal record adjusting equity investment at the time of new acquisition

Part B: Balance of the Equity Investment Account Dec 31, 2021

The value of the Investment as at 31, Dec, 2020 $64,000

Add: The additional investment in Procter (Jan 1, 2021) $310,000

Add: Net Income Share for Rogers (45% x $300,000) $135,000

(45% because the initial 15% and the 30% additional)

Subtract: Dividend received (45% x $40,000) ($18,000)

Value of Equity Investment Dec 31, 2021 $491, 000

7 0

3 years ago

Which of the following statements is CORRECT?a. An investment that has a nominal rate of 6% with semiannual payments will have a

andreyandreev [35.5K]

Answer:

c. If a loan has a nominal annual rate of 7%, then the effective rate will never be less than 7%

CORRECT

as at least is recive 7% of the investment. If payment are made in shorter period (semiannually, quarterly, etc)

Then the effective rate will be higher, not lower.

Explanation:

a. An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is smaller than 6%

FALSE the effective rate will be higher as there is compounding effect.

b. The present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due

FALSE the annuity-due is discounted for one period less, as the payment are made at the beginning of the period therefore; his V is greater.

d. If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different

FALSE if it mades annual payments they will be equal

e. The proportion of the payment that goes toward interest on a fully amortized loan increases over time.

FALSE the interest will decrease over time as there is a portion of principal which is being paid each installment

3 0

3 years ago

Definition of economic costs manuel lives in san diego and runs a business that sells guitars. in an average year, he re

Mice21 [21]

What was the question?

8 0

3 years ago

Why might you complete a 1040 instead of a 1040ez? everfi?

Wittaler [7]

In general, if you have more types of deductions on your tax, the 1040 forms maybe more appropriate for you because it provide you with various options to claim deductions or credit.
The 1040Ez on the other hand only offer a simple format that only beneficial for taxpayers who made certain conditions.

6 0

3 years ago

Read 2 more answers

Trauma is defined by the individual person who experienced it True or False

Zinaida [17]

Answer:

Yes the given statement is true.

Explanation:

Trauma is defined as a deep disturbing, bad or stressful experience. When a person experiences a distress situation, a highly disturbing event, he or she is said to have experienced a trauma. Trauma is defined by the individual person who experienced it. There might me many persons who are affected by the bad experience, but trauma is considered on individual level. For example if someone loses his most near and dear one, he may face trauma. I can give you my personal example, when my mama passed away, i was in a state of trauma. I felt so devastated, and experienced an extremely stressful condition because i was so much attached to her and her sudden death left me in trauma.

So this is something which is always at an individual level.

4 0

3 years ago

Read 2 more answers

Another name for population groups is _____.