1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alinara [238K]
3 years ago
7

Trapp Company reported net income of $110,000 for 2019 and paid dividends of $60,000 on November 1, 2019. Grape Company owns 15%

of the common stock of Trapp and used the fair-value method to account for this investment. How much income should Grape recognize on this investment in 2019?
Business
1 answer:
MArishka [77]3 years ago
6 0

Answer:

$9,000

Explanation:

Given that,

Trapp Company reported,

Net income for 2019 = $110,000

Dividends paid on November 1, 2019 = $60,000

Grape Company owns 15% of the common stock of Trapp.

Using a fair-value method,

Therefore,

Income earned by Grape company is as follows:

= 15% of the total amount of dividend paid

= 0.15 × $60,000

= $9,000

You might be interested in
​Valley, Inc. has​ 9,000 shares of preferred stock outstanding. The preferred stock has a​ $90 par​ value, a​ 14% dividend​ rate
EastWind [94]

Answer:

The dividends payout to preferred stockholders is $113,400 as shown below.

Explanation:

The total dividends payable to holders of preferred shares can be computed thus:

Preferred shares dividends=9000*$90*14%

Preferred shares dividends =$113,400

Preferred shareholders have prior claims to dividends ahead of ordinary shareholders,but after bondholders' interest payments have been settled.

The same way they also have precedence in the distribution of company's assets before ordinary shareholders upon the liquidation of the company.

The downside is that they cannot share in excess profits after payment of dividends as they are part-owners of the company unlike ordinary shareholders.

8 0
3 years ago
How do i know what business i am suited for
Eva8 [605]

Based on what you have a degree on, where the company/business is, would you be happy with the amount of money you got, and would you be ok with what you're doing.

6 0
3 years ago
What job did drivers perform on large southern plantations?
Elan Coil [88]
The occupation did drivers perform on vast southern ranches since they managed the work of slaves. On the off chance that slaves did not take after requests, they likewise rebuffed the slaves.

I hope the answer will help you. 
4 0
4 years ago
Cyclical unemployment is BEST described as unemployment arising from
Ira Lisetskai [31]

Answer:

Contraction cycle or Recession

Explanation:

The cyclical unemployment is due to the cycles of economy ( expantion:Grow and contraction: recession) Under these circumstances unemployment is considered normal as the economy cannot sustain itself always in an expansion cycle.

3 0
4 years ago
Agreement and disagreement among economists
r-ruslan [8.4K]

Answer and Explanation:

The disagreement arise between this economist is due to the differences in the scientific judgements as they disagree due to the various scientific judgements. And, despite their differences, the proposition of two economists should be chosen at random as the tariff and import quotas normally decreased the economic welfare as it always result in deadweight loss and in this both economist should be agree for the same

4 0
3 years ago
Other questions:
  • Harry Putts Productions held investments in equity securities​ (in Ellie ​Company) with a fair value of $ 60 comma 000 at Decemb
    11·1 answer
  • The management of River Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of
    15·1 answer
  • In marketing, an organization refers to
    12·1 answer
  • In 3 or 4 sentences, explain how increasing the money supply can result in economic growth.
    13·1 answer
  • Which development would most reflect Karl Marx's belief in the economic
    5·2 answers
  • So why it is a ration decision to make sure the marginal benefits outweighs the marginal costs? (Be detailed, you can use exampl
    5·1 answer
  • Pine Street Inc. makes unfinished bookcases that it sells for $58.09. Production costs are $37.97 variable and $10.12 fixed. Bec
    11·1 answer
  • You would like to establish a trust fund that will provide $50,000 a year forever for your heirs. The trust fund is going to be
    7·1 answer
  • Kyle liked to think he could program anything digital. He created a new video game, and a major industry firm wanted to buy it f
    9·1 answer
  • edna is the leading brain surgeon in the united states. she enters into a contract to perform a difficult brain operation on ben
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!