1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Fiesta28 [93]
3 years ago
10

Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle's book value at

the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle's January 1, 2020 retained earnings balance is $11 million, and it reports net income of $1.8 million for 2020. Safestyle declares no dividends and has no other comprehensive income. Goodwill from the acquisition was impaired by $1 million in 2019 and $500,000 in 2020. Potash uses the complete equity method to report its investment in Safestyle on its own books. Support What is the December 31, 2020 balance for Investment in Safestyle, reported on Potash's books?
A. $53,300,000
B. $52,000,000
C. $50,000,000
D. $54,800,000
Business
1 answer:
Vika [28.1K]3 years ago
4 0

Answer: A. $53,300,000

Explanation:

Year 2019 balance for Investment

= Cash + Net income - amortization

Net income = Beginning retained earnings 2020 - Beginning retained earnings 2019

= 11 - 8

= 3 million

Balance 2019 = 50 + 3 - 1

= $52 million

Year 2020 balance

= Opening balance + Net income - amortization

= 52 + 1.8 - 0.5

= $53.3 million

= $53,300,000

You might be interested in
Lorenzo and Lila own all of the Double L Corporation's stock. The stock of this corporation is not sold to the general public. L
ladessa [460]

Owners of the company.

<h3>What is a stock of a company?</h3>
  • A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company.
  • Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.
<h3>What is an owner of a company?</h3>
  • A company's "owner" is a person who owns all of the shares.
  • In contrast, a "co-owner" shares ownership of a business with one or more partners.
  • The owner, who is frequently the company's founder, is free to run their business however they like.

Therefore, Lorenzo and Lila are owners of the Double L Corporation.

Know more about stocks here:

brainly.com/question/1957305

#SPJ4

6 0
2 years ago
You have just taken over your family’s printing business. It is important to you that the business has a positive impact on your
Nimfa-mama [501]

Answer:

a. Some of your printing processes utilize chemicals that require press operators to wear masks during production.<u> </u><u>Health and safety risks.</u>

Those chemicals present a health and safety risk because a person can get sick if they do not wear the masks.

b. Because of increased profits in the last 5 years, you have been able to increase staffing levels by 25%. <u>Increase employment.</u>

<u></u>

c. The business is a member of the local Chamber of Commerce and supports local community charities. <u>Improve the quality of life</u>

The business supports local charities which shows that it aims to improve the quality of life.

<u></u>

d. The business is the only one in town to offer 48-hour turnaround on printing projects. <u>Offer valuable products</u>

The business is the only one offering this service so it is offering valuable services.

<u></u>

e. The business uses ink that is shipped in bulky, non-recyclable ink containers. <u>Environment damage</u>

Ink is bulky and containers are non-recyclable. This will cause environmental damage.

5 0
3 years ago
Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8
Alisiya [41]

Answer:

$35,010,000

Explanation:

Calculation for the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project

Cash flow = $11.4 million + $22.6 million + $1,010,000

Cash flow = $35,010,000

Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35,010,000

4 0
3 years ago
Which of the following are factors that can cause a shift in supply?
Setler [38]
A major increase in production due to some market factor as well as the establishment of new companies could potentially lead to a shift in the supply curve for a good. The other answers would not create a shift in the supply curve. 
3 0
3 years ago
Read 2 more answers
The primary aim of strategic management at the business level is A. maximizing risk-return tradeoffs through diversification. B.
cupoosta [38]

Answer:

D. achieving competitive advantage(s).

Explanation:

  • The strategic management at the primary levels involves the setting of the objectives and analyzing the competitive environment and the internal organization.
  • Then evaluating the strategies and also ensuring that the management rules out those strategies across the organization. Thus makes to achieve a competitive advantage and hence plays a major role in the formation of the business with a high advantage.
3 0
3 years ago
Other questions:
  • Division X makes a part with the following characteristics:
    15·1 answer
  • What is a common complaint about regulations pertaining to the establishment and operation of various businesses?
    5·2 answers
  • Malic entered the words "teen music" in a search engine. He found a new site for downloading music. However, Malic notices that
    13·1 answer
  • Bridgeport Corporation's weekly payroll of $16,000 included FICA taxes withheld of $1,224, federal taxes withheld of $3,250, sta
    14·1 answer
  • Roger remembers from a business class he took years ago in college that there are several business forms to choose from. Each fo
    10·1 answer
  • An MRP system that is updated periodically to account for all changes which have occurred within a given time interval is called
    13·1 answer
  • Green Company purchases a truck for $30,000 on the first day of the year. Green Company uses straight-line depreciation and esti
    6·1 answer
  • Yuncen Foods is a food manufacturer based in Lumberne. It gets over half of its revenue from international sales. It has been co
    15·1 answer
  • What is the first account number used in the liabilities division? A. 20 C. 2 B. 21 D. 02
    5·1 answer
  • An investor who goes short in a futures contract will _____ any increase in value of the underlying asset and will _____ any dec
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!