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Anika [276]
4 years ago
6

Use the financial statement effects template to record the following transactions involving investments in marketable securities

accounted for using the equity method.
a. Purchased 12,000 common shares of Bakersfield Co. at $12 per share; the shares represent 30% ownership in Bakersfield.
b. Received a cash dividend of $2.00 per common share from Bakersfield.
c. Bakersfield reported annual net income of $123,000.
d. Sold all 12,000 common shares of Bakersfield for $159,000
Business
1 answer:
Anna007 [38]4 years ago
4 0

Answer:

1. Cash: decreases

Investment : increases

By 144,000= 12000×12

2. Cash: increases

Income : increases

By 24000= 2×12000

3. No effect

4. Cash: increases by 159000

Investment : decreases by 144000

Profit: 15000

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An economic cost of instability would be increase in unemployment - a.

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Your office has just implemented a new process for updating client files. Since you helped to create the process, your superviso
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The above mentioned points are very important while planning an effective presentation to the audience. Consider audience as Lehman and pick up the most easy way to demonstrate the idea of the presentation to them. Secondly give appropriate details about the area on which you are going to give the presentation. Lastly, one must maintain an appropriate length of the presentation, that covers all the important aspects as well as not make the audience lose interest in it due to its length.

4 0
4 years ago
What is the yield to maturity on a bond that pays annual coupon rate of 14%, has a par value of $1,000, matures in 10 years, and
max2010maxim [7]

Answer:

Yield to Maturity =15.6%

Explanation:

The Yield to maturity is the discount rate that equates then price of the bonds to the present of cash inflows expected from the bond

The yield on the bond can be determined as follows using the formula below:  

YM = C + F-P/n) ÷ 1/2 (F+P)  

YM-Yield to maturity-  

C- annual coupon  

F- Face Value  

P- Current Price  

n- number of years

DATA  

Coupon = coupon rate × Nominal value = 1,000 × 14%=140

Face Value = 1000

YM-?, C- 140, Face Value - 1,000, P-911 , n- 10

YM = (140 + (1000-911)/10) ÷ ( 1/2× (1000 + 911) )  

YM = 0.156 × 100 = 15.6%

Yield to Maturity =15.6%

6 0
4 years ago
For the current year temporary differences existed between the financial statement carrying amounts and the tax basis of the fol
Veseljchak [2.6K]

Answer:

Income Tax Expense (Dr.) $49,080,000

Deferred Tax Liability (Cr.) $49,080,000

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8 0
3 years ago
During 2008, Gum Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related
Citrus2011 [14]

Answer:

d. $14,250

Explanation:

Calculation of the amount that Gum should report as estimated warranty liability on its December 31, 2009 balance sheet

First step

2% within twelve months following the sale + 4 % in the second twelve months following the sale.

Will give us 6%

Second step is to calculate the estimated warranty liability that should be reported

Sales Total of $400,000×6%

=$24,000

Hence,

Estimated warranty liability =$24,000 -Total of actual warranty expenditures of $9,750

Estimated warranty liability=$14,250

Therefore the amount that Gum should report as estimated warranty liability on its December 31, 2009 balance sheet will be $14,250

7 0
3 years ago
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