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kenny6666 [7]
2 years ago
10

ABC company uses the equity method to account for its 40% interestt in voting stock of XYZ company. ABC paid $5,000,000 for inve

stment at the beginning of the current year, and XYZ's total book value at the time was $6,000,000. The discrepancy between acquisition cost and share of book value acquired
Business
1 answer:
frutty [35]2 years ago
3 0

Answer:

the end of year book value would be $5,160,000.

Explanation:

given data

equity method to account = 40%

ABC paid investment = $5,000,000

total book value = $6,000,000

solution

when there are more than 20% stake in other company

than we apply equity method

so here we use  

Amount of investment                                                           = $5,000,000

Share in net incom  (600,000 x 40%)                                  = $240,000

Share in the dividend (200,000 x 40%)                               = -$80,000

Book value at the end of the year                                         = $5,160,000

So the end of year book value would be $5,160,000.

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P. Jameson Co. sold $500 of merchandise on Master Card credit sales. The net cash receipts from the sale are immediately deposit
Alchen [17]

Answer:

The journal entry would be as follows:

Account                                  Debit           Credit

Cash                                       $480

Sales Revenue                                           $500

Credit Card Expense                                 $20

The Credit Card Expense corresponds to the 4% fee that Master Card charged P. Jameson Co. ($500 x 20% = $20)

4 0
3 years ago
GANTT refers to the Generalized Activity Network Tracking Technique which was developed to better understand how variability in
Bingel [31]

Answer:

False.

Explanation:

GANTT refers to a chart that was developed by Henry L. Gantt, who was an american engineer and a social scientist, and is thus named after him. This chart is used to describe and illustrate various scheduled activities and the duration that each activity might take to complete. There is no full form for this word "GANTT". Therefore, the statement is false.

4 0
3 years ago
The quantity portion of the staffing definition means that organizations must be concerned about staffing levels and their adequ
azamat
The principle of the question is false to my own knowledge from my great great grandpa.
8 0
3 years ago
A real estate agent is considering changing her cell phone plan. There are three plans to choose from, all of which involve a mo
Anni [7]

Answer:

req 1)

Plan A

0.42 x 150 + 0.17 x 70 = 74.9

Plan B

0.52 x 150 + 0.15 x 70 = 88.5

Plan C  $80

req 2)

from 0 to 190 minutes Plan A

from 191 and beyond Plan C

req 3)

the proportion should be 1/6 daycalls and 5/6 evenings

Explanation:

150 day calls

70 minutes evening calls

Plan A

0.42 x 150 + 0.17 x 70 = 74.9

Plan B

0.52 x 150 + 0.15 x 70 = 88.5

Plan C  $80

2) A will be preferable to B as it has the lower cost

now at some point C will be better as the cost is a flat rate

80 dollars / 0.42 per minute = 190.47

3) 0.42X + 0.17Y = 0.52X + 0.15Y

a minute of daycall is 10 cent higher in plan B

while a minute of evening call is 2 cent lower

thus, to balance there was to be 5 times more evening call than day times:

1:5 1 + 5 = 6

the proportion should be 1/6 daycalls and 5/6 evenings

8 0
3 years ago
To form a corporation, the organizers must follow the requirements set forth by the corporation code of the state in which the c
Fantom [35]

Answer: Incorporating a corporation

Explanation:

According to the question, the given process is known as incorporating the corporation. As, the incorporation is one of the type of legal process in which the organization are used the various types of corporate entities to form a corporation.

The corporation is the type of legal entity in an organization which results into the separation of investors and the owner.

According to the question, the organizers uses the proper requirement with the help of corporation code to form a proper corporation.

8 0
2 years ago
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