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Sveta_85 [38]
3 years ago
15

When a company applies the initial value method in accounting for its investment in a subsidiary and the subsidiary reports inco

me less than dividends paid, what entry would be made for a consolidation worksheet?
Picture

C above

B above

A above

E above

D above
Business
1 answer:
Effectus [21]3 years ago
8 0

Answer:

A) Dr. Retained earnings Cr. Investment in subsidiary

Explanation:

Retained earnings is an equity account (credit balance) and since it must decrease due to the fact that the amount of distributed dividends is larger than the subsidiary's profits, it must be debited.

Investment in subsidiary is an asset account (debit balance) and since it must decrease for the same reason as above, it must be credited.

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Suppose that a firm has purchased some land for $1,250,000 a year ago to develop a new outlet, and the land now would sell $2,00
scoray [572]

Answer:

$13,915,000

Explanation:

Land-cost              $1,250,000

Construction cost $12,000,000

Equipment cost(150,000+15,000) $165,000

Inventory                          $500,000

Total initial investment outlay $13,915,000

Please note that fair value of land is irrelevant as the land was purchased for the outlet being set up and not for any other project.

8 0
4 years ago
Skyline Corp. will invest $130,000 in a project that will not begin to produce returns until the end of the 3rd year. From the e
koban [17]

Answer:

NPV = $23,146.99

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

The NPV can be calculated using a financial calculator:

Cash flow in year o = $- 130,000 

Cash flow each year in year 1 and 2 = 0

Cash flow each year in year 3 to 12 = $34,000

I = 12%

NPV = $23,146.99

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

7 0
4 years ago
Two of the primary challenges facing managers today are ____. managing for a competitive advantage and diversity dealing with un
oee [108]
The right answer that will fill in the blank is the first option which is the managing for a competitive advantage and diversity. It is one of the challenges that the managers faces today because a lot of things arises now a days, especially new technologies and advances that could rise competition. It is where this challenge occurs and opens as a challenge for managers and also the diversity for now a days, a lot of things could be set as a factor in competition.
3 0
3 years ago
Which type of training would be considered vocational training?
sergij07 [2.7K]
It is training that you need for a career that you want to do and you go there during high school to do the training
5 0
3 years ago
Read 2 more answers
John manufactures household furniture. His start-up costs, including tools, plans, and advertising, total \$5000$5000dollar sign
scZoUnD [109]

Answer:

$5,000 + $350f

Explanation:

The computation of the production cost in dollars is shown

Here we use the equation form

The start up cost is $5,000

Labor, material cost $350

Now if he makes f pieces of furniture so, his production cost would be

= Startup cost + labor, material cost

= $5,000 + $350f

Hence, this is the answer and the same is to be provided

8 0
4 years ago
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