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Ierofanga [76]
2 years ago
13

Wildhorse Company purchased 300 of the 1000 outstanding shares of Ayayai Company's common stock for $570000 on January 2, 2021.

During 2021, Ayayai Company declared dividends of $85000 and reported earnings for the year of $370000. If Wildhorse Company used the fair value method of accounting for its investment in Ayayai Company, its Equity Investments (Ayayai) account on December 31, 2021 should be
Business
1 answer:
GarryVolchara [31]2 years ago
7 0

Answer:

$664,000

Explanation:

Correct words: <em>"If Wildhorse Company used the </em><em>Equity </em><em>value method of accounting for its investment in Ayayai Company"</em>

<em />

Ownership percentage = 300/1000

Ownership percentage = 30%

Balance in equity investment at Dec 31, 2021 = $570,000 + Share in earnings ($370,000*30%) - Share in dividends paid out ($85000*20%)

Balance in equity investment at Dec 31, 2021 = $570,000 + $111,000 - $17,000

Balance in equity investment at Dec 31, 2021 = $664,000

So, the Equity Investments balance for Ayayai company on December 31, 2021 is $664,000.

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Answer:

Stakeholder participation,

Explanation:

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so yah I think that so

4 0
2 years ago
Which of the following is not true of depreciation accounting?
tekilochka [14]

Answer:

B. Depreciation allocates replacement values as part of the matching of revenues and expenses.

Explanation:

Depreciation allocates replacement values as part of the matching of revenues and expenses is not entirely true about depreciation accounting.

6 0
3 years ago
Which results from a large company's ability to take advantage of economies of scale?
andreev551 [17]
Large companies have the ability to take advantage from the economies of scale through offering goods which are more affordable than other smaller retailers. This is because as the company grows, their unit cost decreases due to some factors caused by the economies of scale. 
4 0
3 years ago
GAAP includes which of the following pronouncements: Multiple Choice Statements of Financial Accounting Standards. Accounting Re
natima [27]

Answer:

All of the choices are correct.

Explanation:

GAAP is an acronym for Generally Accepted Accounting Principles, it comprises of the accounting standard, procedures and principles used by public institutions in the United States of America. The U.S GAAP is issued by the Financial Accounting Standards Board (FASB) and adopted by the U.S. Securities and Exchange Commission (SEC).

GAAP includes each of the following pronouncements:

Statements of Financial Accounting Standards, Accounting Research Bulletins, Accounting Principles Board Opinions.

For external reporting purposes, United States of America, Generally Accepted Accounting Principles (GAAP) allows companies to use only the traditional format of the income statement.

United States of America, Generally Accepted Accounting Principles (GAAP) is the accounting principles, procedures and standard issued by the Financial Accounting Standards Board (FASB) and adopted by the United States of America, Securities and Exchange Commission (SEC).

When accountants prepare and compile financial statements for public firms, it must be in line with United States of America, Generally Accepted Accounting Principles (GAAP).

5 0
3 years ago
Ms. long is a first grade teacher and uses cooperative learning in her classroom. in creating groups of students she will equall
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This is a term in psychology coined by a famous psychologist Vygotsky. He believed that if we provide enough support for the children, while also giving them their independence, the children will soon succeed on their own, complete a task without our help. So here, Ms. Long knows that each of these students can help each other complete the task and thus improve their knowledge.
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3 years ago
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