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3 years ago

Governments generally take responsibility for

Business

1 answer:

SOVA2 [1]3 years ago

6 0

Answer:

Explanation:

I'm sorry if it's wrong tell me if it's right though

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On January 1, 20X6, Plus Corporation acquired 90 percent of Side Corporation for $180,000 cash. Side reported net income of $30,

LenKa [72]

Answer:

1) b) $25,000

2) d. $203,400

Explanation:

Ref Particulars Amount

a Fair value of entity 200,000

b Total value without patent 175,000

c=a-b Patent 25,000

Therefore, the increase in the fair value of patents held by Side is;

b) $25,000

Fair value of consideration given:

Ref Particulars Amount

Stock 0

Cash 180,000

a Total consideration 180,000

b Stake acquired 90%

c=a/b Fair value of subsidiary 200,000

d=100%-b Minority interest 10%

e=c*d Fair value of minority interest 20,000

On acquisition date

Value of subsidiary without patent

Common stock 100,000

Paid in capital -

Retained earnings 60,000

Fair value adjustment:

Patent -

Equipment 10,000

Land 5,000

Fair value without patent 175,000

Particulars Investment

Acquisition date 180,000

Add: share of net income 54,000

Less: Dividends 18,000

Less: Fair value amortization 12,600

Balance Jan 1, 20X8 203,400

{Share of earnings for 2 years = 30,000 × 2 × 90% = 54,000 }

{Share of dividends for 2 years = 10,000 × 2 × 90% = 18,000 }

{Fair value amortization for 2 years = 7,000 × 90% × 2 = 12,600}

Therefore Balance as at Jan 1, 20X8 is

d) $203,400

5 0

3 years ago

Todd Johnson had the following items of income and losses during the tax year:

Zina [86]

Answer:

b. $700

Explanation:

Todd's capital gains = -$1,000 (bad debt) - $2,000 (gain on commodities held for 2 years) - $800 (loss on stock held for 2 years) - $4,500 (flood damage) + $5,000 (gain on stocks held for 13 months) = $700

Capital losses due to federally declared natural disasters can offset capital gains.

8 0

2 years ago

Read 2 more answers

Anthony Corporation reported the following amounts for the year: Net sales $296,000 Cost of goods sold 138,000 Average inventory

never [62]

Answer:

132.25 days

Explanation:

average days in inventory is an activity ratio.

Activity ratios calculates the efficiency of performing daily tasks.

average days in inventory = number of days in a period / inventory turnover

inventory turnover = cost of goods sold / average inventory = 138,000 / 50,000 = 2.76

Assuming a 365 day period , 365 / 2.76 = 132.25

4 0

3 years ago

Outsourcing decision:-Walker, Inc. currently manufactures 4,000 motors for its electric scooters annually. Direct material costs

user100 [1]

Answer:

Walker shall continue to make such motors as there will be savings of $5,600

Explanation:

Variable cost per unit

Direct material = $44,000/4,000 = $11

Direct labor cost = $16,000/4,000 = $4

Variable overhead = $5

Total variable overhead = $20

Total Fixed cost = ($18 - $5) $\times$ 4,000 units = $52,000

Total cost of manufacturing = $52,000 + $20 $\times$ 4,000

= $52,000 + $80,000 = $132,000

In case of buying

Fixed cost = $52,000 $\times$ 80% = $41,600

Variable cost = $24 $\times$ 4,000 = $96,000

Total cost in case of buying = $137,600

Since the cost of buying motors is expensive than manufacturing, Motors shall be manufactured by Walker Inc.

In that case it saves = $137,600 - $132,000 = $5,600

7 0

3 years ago

flashlights have been selling for $6 each and at this price, sales are 3,000 per month. The store wishes to raise the price and

Luda [366]

Answer:

-3993

Explanation:

5 0

2 years ago