Answer:
Feb. 1 DR Cash $400,000
CR Tax anticipation notes $400,000
Dec 31 DR Expenditures - Interest $3,666.67
CR Accrued Interest Payable $3,666.67
Working
February to December = 11 months
Interest = 400,000 * 1.0% * 11/12 months = $3,666.67
April 1 DR Investments $100,000
CR Cash $100,000
Sept. 30 DR Cash $50,200
CR Investments $50,000
Interest Income $200
Working
Interest Income = 50,000 * 0.8% * 6/12 months
= $200
One of the steps in solving this problem is this one:
As we know as shown above, the joournal entry for 2014 and 2015 will include the investment balance, increases and decreases to equity and intra-entity profits realized and deferred. Also the balance of the acquisition needs to be calculated.
Calculation of the book value of the purchase made as the book value of Company K times percent purchased:
400,000 * 0.40 = 160,000
Then, calculate the difference in the acquisition and the book value of the purchase:
210,000 - 160,000 = 50,000
They created efficiencies that streamlined government.
Answer:
The correct option is "A"
Explanation:
The pre-dominant confirmations would incorporate;
-
The restriction by the investee to the speculator's impact confirm by the claims or protests to administrative specialists.
- An understanding is marked by the speculator to give up the noteworthy investor rights.
-
A gathering of investors have a larger part proprietorship, who exercise impact over the tasks of the investee regardless of the perspectives on the investor.
- A portrayal structure the investee's governing body can't be gotten by the financial specialist.
In the event that the speculator claims 30 percent of the democratic supplies of investee and other individual holds 70 percent of the democratic stocks, at that point it can't be said that the financial specialist (30 percent) has the capacity of essentially impact in investee.
Answer:
9.5%
Explanation:
The computation of the after tax rate of return is shown below:
But before that first determine the following calculations
The interest income earned
= $800,000 × 12.50%
= $100,000
Now After tax interest income is
= $100,000 × (1 - 0.24)
= $76,000
Now
After tax rate of return on investment is
= ($76,000 ÷ $800,000) × 100
= 9.5%
