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ahrayia [7]
3 years ago
11

Plastic Company purchased 100 percent of Spoon Company's voting common stock for $666,000 on January 1, 20X4. At that date, Spoo

n reported assets of $697,000 and liabilities of $241,000. The book values and fair values of Spoon's assets were equal except for land, which had a fair value $116,000 more than book value, and equipment, which had a fair value $94,000 more than book value. The remaining economic life of all depreciable assets at January 1, 20X4, was ten years. Spoon reported net income of $78,000 and paid dividends of $53,000 in 20X4.
Required:
Compute the amount of investment income to be reported by Plastic using the equity method for 20X4.
Business
1 answer:
ziro4ka [17]3 years ago
6 0

Answer: $68,600

Explanation:

Investment Income using Equity method = Plastic company Share in income of Spoon company - Depreciation on Assets

Plastic Company share in Income of Spoon Company = 100% * 78,000 = $78,000

Land cannot be depreciated so only Equipment will be depreciated.

= 94,000/10 years

= $9,400

Investment Income using Equity method = 78,000 - 9,400 = $68,600

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In a progressive tax system, taxes decrease as income increases.<br><br> True or False?
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Yes , it is true . when it is in a progressive tax system
8 0
3 years ago
Park Company reports interest expense of $340,000 and income before interest expense and income taxes of $6,120,000.(1) Compute
algol13

Answer: 1. 18 times

2. Park is in better position

Explanation:

1. Times interest earned is a financial ratio that measures interest coverage. It's essentially to check if a company can pay it's debt payments and is calculated by either EBIT or EBITDA divided by the total interest expense. The higher the better and anything above 2.5 times is usually considered.

Calculating would therefore be,

= $6,120,000 /$340,000

= 18 times.

2. As mentioned in the first answer, for the Times interest earned, the higher it is, the more favourable it is. So Park Company will be considered safer and are most definitely in a better or worse position than its competitor to make interest payments if the economy turns bad. The fact that theirs is 18 means that they can pay off their interest expense 5 times more than their competitor who can only repay 12 times.

If you need any clarification do comment.

7 0
3 years ago
Businesspeople from ________ often arrive after the scheduled meeting time and prefer to spend time building personal trust befo
tatyana61 [14]

Latin American businesspeople frequently come after the agreed meeting time because they prefer to first spend time establishing a good relation. They also conduct meetings informally, allowing them to show up well past the appointed time.

Goals drive business communication. People inside and outside of an organization must be informed of the rules, regulations, and policies of that organization. Business communication is governed by a set of standards and guidelines. Early corporate communication was restricted to written correspondence, telephone calls, etc. However, with the advancement of technology, we now have satellite communication, cell phones, video conferencing, emails, and more to facilitate corporate communication. Effective business communication contributes to an organization's reputation-building efforts.

Any firm depends on its customers. You may maintain effective contact with your consumers and create enduring relationships if you work on developing excellent interpersonal skills.

Customers who are satisfied will promote your company. They advertise and endorse your company. They are, however, also more understanding when things don't go as planned.

Learn more about effective communication here

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8 0
2 years ago
Jamal Steel, a rapidly growing small steel company with annual revenues of $8 million is looking to buy a large industrial furna
Sloan [31]

Answer:

The correct answer is A. maker.

Explanation:

The manufacturing industry (manufacturing) is the production of added value of merchandise for use or sale using labor and machinery, tools, chemical and biological processes, or formulation. The term can refer to a wide range of human activities, from handicraft to high technology, but it is more commonly applied to industrial production, in which raw materials are transformed into finished products on a large scale. Such finished products can be used to manufacture other more complex products, such as airplanes, appliances or cars, or be sold to wholesalers, which in turn sell them to retailers, which they then sell to end users or consumers.

6 0
3 years ago
Rosseta Technologies, an information technology service provider to a company based out of Germany, allows its employees to work
kondaur [170]

Answer: A.) An enterprise search software

Explanation: Placing restrictions on the search or retrieval of confidential data or information may be enforced through the use of an enterprise search software. The enterprise search software enables the retrieval of information or data from databases and other enterprise-level sources while also ensuring that these informations or data are made available to a defined audience or population by following carefully defines rules and compliance procedures in other to ascertain security of organizational data and information.

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3 years ago
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