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EastWind [94]
2 years ago
12

Jones, Incorporated acquires 15% of Anderson Corporation on January 1, 2020, for $105,000 when the book value of Anderson was $6

00,000. During 2020 Anderson reported net income of $150,000 and paid dividends of $50,000. On January 1, 2021, Jones purchased an additional 25% of Anderson for $200,000. Any excess cost over book value is attributable to goodwill with an indefinite life. The fair-value method was used during 2020 but Jones has deemed it necessary to change to the equity method after the second purchase. During 2021 Anderson reported net income of $200,000, and reported dividends of $75,000.The balance in the investment account at December 31, 2021, is
Business
1 answer:
koban [17]2 years ago
3 0

Answer: $355000

Explanation:

Based on the information given in the question, the balance in the investment account at December 31, 2021, will be:

15% of Anderson Corporation acquired = $105,000

Add: Additional 25% of Anderson Corp. purchased = $200,000

Add: Share of income 2021 = $200,000 × 40% = $80,000

Less: Dividend paid = $75,000 × 40% = ($30,000)

Balance in the investment = $355,000

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Vogel Corporation's cost of goods manufactured last month was $136,000. The beginning finished goods inventory was $35,000 and t
rosijanka [135]

Answer:

117,000 adjusted COGS

Explanation:

$$Beginning Inventory + Manufactured = Ending Inventory + COGS

35,000 + 136,000 = 48,000 + COGS

COGS = 123,000 before adjustment

overapplied overhead for 6,000

This means the applied is higher than actual expenses, the cost is 6,000 lower we must decrease the COGS

123,000 - 6,000 = 117,000 adjusted COGS

6 0
2 years ago
What is cookie consent ?
emmainna [20.7K]

Answer:

A cookie consent banner is the cookie warning that pops up on websites when a user first visits to the site. It's the website banner that <em>declares</em> the cookies and tracking present on a website and gives the users a choice of prior consent before their data is handled.

6 0
3 years ago
Read 2 more answers
If there are no statistical discrepancies, NDP (net domestic product) is: a) NI minus net foreign factor income.b) NI plus corpo
aliya0001 [1]

Answer:

a

Explanation:

4 0
3 years ago
Buffalo National Corp. (BNC) is currently an all-equity firm worth $320 million with 50 million common shares outstanding. BNC p
balu736 [363]

Answer:

The solution as per the given problem is provided below throughout the explanation portion below.

Explanation:

The given values are:

Debt issued,

= 120

Pretax earnings,

= 80

Tax,

= 35%

All equity firm,

= $320

Number of common stock,

= 50

(a)

Balance sheet before the debt issue's announcement will be:

<u>Assets </u><u>                                 320</u>

<u>Debt   </u><u>                                    0</u>

<u>Equity  </u><u>                                 320</u>

then,

The total will be "320".

(b)

The per share price will be:

= \frac{Equity}{Number \ of \ common \ stock}

= \frac{320}{50}

= 6.40

or,

After tax, the net income will be:

= EBIT(1-t)

= 80(1-0.35)

= 80\times 0.65

= 52

(c)

The return on equity will be:

= \frac{Net \ income \ after \ taxes}{Value \ of \ equity}

= \frac{52}{320}

= 0.1625

or,

= 16.25 (%)

5 0
3 years ago
General Forge and Foundry Company has a quick ratio of 2.00; $38,250 in cash; $21,250 in accounts receivable; some inventory; to
Vlada [557]

Answer:

The answer is General Forge and Foundry Company selling and replacing its inventory 2.55 times per year on average.

Explanation:

We have:

The company cost of good sold = Sales x 65% = 100,000 x 65% = $65,000

The company inventory = Total current asset - Cash - Account Receivable = 85,000 - 38,250 - 21,250 = $25,500

=> Inventory turn over ratio = Cost of good sold / Inventory = 65,000/25,500 = 2.55 times or the company is selling and replacing its inventory 2.55 times per year.

So, the answer is 2.55 times.

4 0
3 years ago
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