Answer:
B. The amount of equity reported by Frankfort Corporation is $672,000
Explanation:
Equity earnings
= Frankfort's share in net income of Bradley
= 1,680,000 * 40%
= 672,000
Option B
Please comment if you face any issues****************
Answer:
False
Explanation:
Green's distribution of $50,000 in to its sole shareholder at the end of the year should be treated as a dividend because Green's total earnings and profits for the year were $100,000.
A distribution from a corporation to a shareholder can only be treated as a dividend when the corporation made a profit during the current year, or has positive accumulated earnings and profits.
Answer:
The correct option is c. Purchases assets at a cost of $25,000,000.
Explanation:
An emergency loan can be described as a loan that can obtained on short notice by a borrower in to cover unexpected costs.
From the options, purchasing assets at a cost of $25,000,000 will leave Chester in a serious liquidity position as the it will take 94.92% [i.e. ($25,000,000 / $26,337,000) * 100] of its current cash balance and leave the company with just $1,337 current cash balance.
Because the next period's Cash Flows From Operations are expected to be the same as this period's, purchasing assets at a cost of $25,000,000 puts Chester at the greatest danger of needing an emergency loan.
Therefore, the correct option is c. Purchases assets at a cost of $25,000,000.
Answer:
C
Explanation:
one it makes sense & it fits in the context of the sentence
Answer:
I believe that the answer would be true
Explanation:
