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
damaskus [11]
3 years ago
7

If 25% of the common stock of an investee company is purchased long term investment the appropriate method of accounting for the

investment is:_______
a. the cost method.
b. the equity method.
c. the preparation of consolidated financial statements.
d. determined by agreement with whomever owns the remaining 90% of the stock.
Business
1 answer:
Lina20 [59]3 years ago
8 0

Answer:

b. the equity method.

Explanation:

The equity method is used when the investor company will own approximately 20% to 50% of the common stock of the investee company. This method is used because the investor company will have significant influence over the actions taken by the investee company. The investee company will generally be considered an affiliate company, but not a subsidiary.

You might be interested in
Read the Leading Innovation and Change: Best Practices Case Study and answer the following in the Lesson Forum: What elements of
4vir4ik [10]

The correct answer to this open question is the following.

Although there is no further information about the case of study, we can say that the question possible refers to the case where the name of the company is just "The Client." The name of the document is "Leading Innovation Change - The Kotter Way."  

This case refers to the challenges faced by an organization when it is time to innovate. Many members want to innovate but the culture of the company or the lack of proper leadership from managers often hinders the innovation efforts of the company.

So some of the elements of Kotter's Eight Stages of Leading Change that were included in the case were the following.

Create Urgency. The creation of new products of the company was limited and was not enough to compete in the future. A sense of urgency was needed to implement innovation.

Form a Powerful coalition. The company had to be very selective about the kinds of products that could help it to successfully compete in the future. The company had to use the best it had to establish priorities.

Create a vision for change. It was critical for the company to establish a new vision to get the results it needed. A renovation of the processes to face new necessities was imperative. Change has to be part of every member's mind.

Communicate the vision. This new vision had to be shared through the entire company. The members had to understand the importance of the innovative practices and each and every one of them had to be part of this new mentality.  

6 0
3 years ago
All currencies are worth exactly the same.<br><br> Question 45 options:<br> True<br> False
ycow [4]

Answer:

False!

Explanation:

that's why they are different sizes, material, and weight!

Some american dollars are worth alot more than a dollar in say, mexico. Our resources are more valuable.

Glad I could help!

6 0
3 years ago
Read 2 more answers
Cheshire Corporation purchases a machine for​ $125,000. It has an estimated salvage value of​ $10,000 and is expected to produce
densk [106]

Answer: <u><em>Depreciation for the first year = 17825</em></u>

Explanation:

Given:

Machine purchased for $125,000

Salvage value of​ $10,000

Output = ​100,000

First year of​ operation, Output = 15500

First, we'll evaluate depreciation per unit over the entire life of the machine:

i.e. Depreciation\ per\ unit = \frac{ Purchasing\ cost - Salvage\ value}{Total\ units\ produced}

Depreciation per unit = \frac{125000 - 10000}{100000}

<em>Depreciation per unit = 1.15</em>

Now, we'll compute the depreciation for the first year:

Depreciation for the first year = Depreciation per unit ×  Output (first year)

Depreciation for the first year = 1.15 × 15500

<u><em>Depreciation for the first year = 17825</em></u>

7 0
3 years ago
Read 2 more answers
American Hardware, a national hardware chain, is considering purchasing a smaller chain, Eastern Hardware. American's analysts p
Travka [436]

Answer:

The maximum price per share that American should offer is $18.13 per share

Explanation:

The computation of the maximum price per share is shown below:

= Present value ÷ Number of outstanding shares

= $72.52 million ÷ 4 million shares

= $18.13 per share

For computing the maximum price, we used the present value and the discount rate is irrelevant in the computation part. Hence, it is ignored plus the current price is also ignored.

4 0
3 years ago
(1 point)
9966 [12]

Answer:

The correct answer is Cash to Close number

Explanation:

Closing disclosure is the disclosure which provided by the lender to the person 3 days before closing. It states the final costs as well as the terms of the mortgage.

And the amount of money which is required to close so that loan can be processed is referred to as the Cash to close number. In other words, it is the amount needed to bring the table for closing the deal involving the closing cost and down payment.

4 0
3 years ago
Other questions:
  • When people engage in activities that help others, their brain releases endorphins, the brain’s natural opiates, which induce in
    5·1 answer
  • The Lory Company had net earnings of $127,000 this past year. Dividends of $38,100 were paid. The company's equity was $1,587,50
    6·1 answer
  • Andrew agrees to paint Rosalene's house for $500. Two days after he starts the job, he decides that $500 isn't enough money. He
    13·1 answer
  • The telecom industry in the country of Andalus is an industry characterized by the presence of strong network effects, high bran
    15·2 answers
  • Which of the following is a non-depository intermediary?
    14·1 answer
  • Waldron inc. is considering selling to a group of new customers that will bring in credit sales of $24,000 with a return on sale
    14·1 answer
  • A vendor raises the cost of materials you planned to order, and the increased cost will put your project over budget. Which shou
    13·1 answer
  • VI. Here we consider the paradox of saving one last time in the context of the AS-AD model. Suppose the economy begins with outp
    14·1 answer
  • When returning your unit to service following a call, the responsibility of ensuring that the unit is restocked and ready for an
    7·1 answer
  • Barney owns a lot valued at $84,000. he purchases an adjoining lot for $66,000 and merges the two properties. the current apprai
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!