Answer:
$315,600
Explanation:
Ownership = 40%
Investment = $182,000
Share of dividends = 40%*21,000 =8400
Share of income = 40%*75000 = 30000
Increase in share price = $21-$13= $8
investment
Dr Cr
Investment $182,000
Dividend received $8400
Income received $30,000
Increase in share price $112,000
324,000 315,600
Answer:
A) The GAAP statement is based on cost function rather than cost behavior.
Explanation:
Income statements that follow GAAP rules categorizes expenses based on their business function: product, selling or administrative.
While cost behavior categorizes costs based on how they influence a company's activities: variable, fixed and mixed. When a manager wants to measure the impact of any decision he/she makes, they need to use this type of categorization. For example, if fixed costs increase, what is the new break even point? If variable costs decrease, how is the marginal cost affected?
<span>sweat equity, the patent lawyer is doing for a project or enterprise in the form of effort to work for the ownership interest in a business that will increase in value it is a preferred mode of building equity for entrepreneurs who do have much money in their start-up ventures since they may be unable to provide as much financial capital to their business</span>
