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jolli1 [7]
3 years ago
15

Pal Corp.'s 2004 dividend income included only part of the dividend received from its Ima Corp. investment. The balance of the d

ividend reduced Pal's carrying amount for its Ima investment. This reflects that Pal accounts for its Ima investment by the:
Business
1 answer:
VashaNatasha [74]3 years ago
7 0

Answer:

Fair Value method, and only a portion of Ima's 2004 dividends represent earnings after Pal's acquisition.

Explanation:

The part of the dividend that reduce the carrying value of the investment can be said to be a liquidating dividend. Liquidating dividend is said to have occurred when the payment made by the investee is higher than the income that was earned in the course of the period in which the shares of the investee was owned by the investor.

On the other hand, the cost method treats liquidating dividends as spend or reduction in the investment account and treats normal dividend as income. Hence it is impossible for the firm to use equity method.

This is because dividend are seen as a reduction in investment account under the equity method. This means that dividends received cannot be taken as income in this method, hence C and D are wrong.

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a self-employed taxpayer may be eligible to deduct amounts paid for medical insurance for themselves and for their families, as
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Coverage plans are beneficial to each person seeking to defend their family, property/property, and themselves from economic chance/losses: coverage plans will help you pay for clinical emergencies, hospitalization, contraction of any illnesses and treatment, and medical care required in the future.

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7 0
1 year ago
Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, an
dedylja [7]

Answer:

Please see attachment

Explanation:

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4 0
3 years ago
After conducting a market research study, Stewart Manufacturing decided to produce a new interior door to complement its exterio
s344n2d4d5 [400]

Answer:

The target cost for each interior door $96 per door.

Explanation:

Target Price = $120

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Rate of return = 20%

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3 0
4 years ago
In a perpetual inventory system a.the inventory records cannot be computerized. b.the amount of inventory for sale and the amoun
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Answer:

d. each purchase and sale of inventory is recorded in the inventory account.

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3 years ago
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