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Ugo [173]
2 years ago
10

g Perfection purchased a 25% stake in Satisfactory for $486,000 on Jan 2, 2021. On Jan 1, 2021, Satisfactory had a book value of

equity on its balance sheet of $1,944,000. What is the value that Perfection records in it's books on Jan 2, 2021 related to its investment in Satisfactory
Business
1 answer:
Brums [2.3K]2 years ago
5 0

Answer:

The value that Perfection records in it's books on Jan 2, 2021 related to its investment in Satisfactory is:

$486,000.

Explanation:

a) Data and Calculations:

Net asset value of Satisfactory = $1,944,000 on acquisition date

Stake purchased by Perfection = 25%

25% of the net asset value of Satisfactory = $486,000 ($1,944,000 * 25%)

b) There is no goodwill arising from the investment in Satisfactory.  The equity method will be used to account for the investment in the Satisfactory.  The Equity Method involves recording the investment in an associated company like Satisfactory when Perfection's ownership interest in Satisfactory is valued at 20–50% of the net assets.

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Answer:

point-of-purchase display              

Explanation:

Point-of-purchase display: The term "point-of-purchase display" is also denoted as "POP display" is described as one of the different marketing materials or advertising that is being placed next to any merchandise that it has been promoting. However, these items are being generally located or present in any checkout area or some other location whereby that specific purchase decision is being made.

In the question above, the given type of sales promotion is referred to as a point-of-purchase display.

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3 years ago
Blue Ridge Crafters is a co-operative that distributes traditional household furnishings, such as home-spun textiles, hand-throw
Harman [31]

Answer:

C) Horizontal growth strategy.

Explanation:

In the given situation, blue ridge would added non related products for the customers who already purchased it from them. Also it shows the concept of one-stop shop i.e. catering should be provided to all rounds requirement for the customers who visited them

Therefore as per the given scenario, the option c is correct

And, the same would be considered

5 0
2 years ago
If a consumer buys Charmin bath tissue that is the exact same quality as a generic brand only more expensive, Charmin has create
Vlada [557]

If a customer purchases Charmin bath tissue at a price that is higher but of the same quality as a generic brand, Charmin has established brand equity with the customer.

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What is a brand when multiple products are sold under the same name?

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Learn more about brand equity here:

brainly.com/question/29733482

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7 0
1 year ago
cost formula is expressed as follows: Y = $17PH + $760,000 where PH is defined as process hours. What budgeted dollar amount wou
VMariaS [17]

Answer:

B. $ 1,984,000 $ 2,112,000

Explanation:

Static budget is a budget that has been prepared for a standard level of output with no tendency to vary irrespective of the level of output.

Therefore, the figure that will appear in static budget  is as follows:

  Y = $16PH + $640,000 where PH is defined as process hours

PH  = 84,000  (Budgeted output)

  Y  = $16(84,000) + $640,000

  Y  = $1,344,000 + $640,000

  Y  = $1,984,000

That is the figure that will appear in the static budget is  $1,984,000

Flexible budget is a budget designed to vary with the level of actual activity.

Therefore the figure that will appear in the flexible budget  is as follows:

  Y = $16PH + $640,000 where PH is defined as process hours

PH  = 92,000   (Budgeted output)

  Y  = $16(92,000) + $640,000

  Y  = $1,472,000 + $640,000

  Y  = $2,112,000

That is the figure that will appear in the flexible budget is  $2,112,000

8 0
2 years ago
On october 4, 2017, terry corporation had credit sales transactions of $2,500 from merchandising having a cost of $1,900. the en
Arturiano [62]

I believe that this problem has the following choices:

 

> a debit of $2,500 to Merchandise Inventory.

> a credit of $2,500 to Sales.

> a debit of $1,900 to Merchandise Inventory.

> a credit of $1,900 to Cost of Goods Sold.

 

The correct answer from the choices is:

<span>> a credit of $2,500 to Sales
</span>

 

<span> </span>

8 0
3 years ago
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