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quester [9]
3 years ago
9

On December 31, 2016, Akron, Inc. purchased 5 Percent of Zip Company's common shares on the open market in exchange for $16,600.

On December 31, 2017, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $97,500.During the next two years, the following information is available for Zip Company: IncomeDividends DeclaredCommon StockFair Value (12/31)2016 $315,0002017$70,000$6,700390,000201890,00014,500472,000 At December 31, 2017, Zip reports a net book value of $287,000. Akron attributed any excess of its 30 percent share of Zip's fair over book value to its share of Zip's franchise agreements. The franchise agreements had a remaining life of 10 years at December 31, 2017. Assume Akron applies the equity method to its Investment in Zip account:What amount of equity income should Akron report for 2018
Business
1 answer:
Oxana [17]3 years ago
8 0

,Answer:

$23,910

Explanation:

The computation of the  amount of equity income should Akron report for 2018 is given below:

But before that the amortization is

Purchase price $97,500

carrying value ($390,000 ×5%) $19,500

Total fair value $117,000

Less: net book value ($287,000 × 0.30) $86,100

Franchise agreement $30,900

Divided by Remaining life 10

annual amortization $3,090

Now the amount of equity income is

= $90,000 ×30% - $3,090

= $23,910

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Answer:

d. an increase in the quantity of bicycles demanded.

Explanation:

For this question, the law of demand applies.  

According to the law of demand, when the price of the good increases the quantity demanded of that good would be decreased keeping other things constant and when the price of the good decreases the quantity demanded of that good would be increased keeping other things constant.

It reflects the inverse relationship between the price and the quantity demanded of the good.

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Both Apple and Google sell electronic devices, and each of these companies has a different product mix.
Marrrta [24]

Answer:

Apple contribution margin

$    300 per unit

Apple Break even point:

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Google contribution margin

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BEP

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Explanation:

\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}

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Sales \: Revenue - Variable \: Cost = Contribution \: Margin

Apple contribution margin

550 - 250 = 300 per unit

Apple Break even point:

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BEP

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from accessibility improvement to land development: a comparative study on the impacts of madrid-seville high-speed rail.
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Madrid–Seville high-speed rail line.
The 472 kilometres (293 miles) long Madrid-Seville high-speed line, also known as NAFA or Nuevo Acceso Ferroviario a Andaluca, is a Spanish railway line used for high-speed travel between Madrid and Seville. Since April 21, 1992, the first high-speed rail link in Spain has been operational, reaching speeds of up to 300 km/h (186 mph). Over half less time was required to go between the two end points.

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6 0
1 year ago
Sweat equity, and other methods of reducing the initial cost of getting a company off the ground without resorting to amassing o
vovangra [49]

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Explanation:

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max2010maxim [7]

Answer:

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6 0
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