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
Annette [7]
2 years ago
7

An investor company owns 30% of the outstanding common stock of an investee company, which allows the investor to exercise signi

ficant influence over the investee. The Equity Investment was reported at $500,000 as of the end of the previous year. During the year, the investor received dividends of $60,000 from the investee. The investee reports the following income statement for the year:
Business
1 answer:
kodGreya [7K]2 years ago
5 0

Answer:

Note: The full question is attached as picture below

a. Equity income that the investor should report in its income = Net income * Investor share = 400,000 * 30% = $120,000

b. Particulars                                 Amount

Equity investment opening           500,000

Add: Equity income                        120,000

Less: Dividend paid                        <u>60,000</u>

Equity investment at end of year  <u>560,000</u>

c. The fair value of the Investee company will remain at adjusted cost. and the investment is not adjusted to fair value

You might be interested in
All of the following would affect the position of the supply curve for cranberries, except: Question 28 options: the price of ag
myrzilka [38]

The factor that would not affect the position of the supply curve for cranberries is the popularity of cranberry drinks.

The supply curve is a graph that shows the relationship between price and the quantity supplied. The supply curve is positively sloped. A change in the position of the supply curve can either be an outward shift or an inward shift. An outward shift indicate an increase in supply and an inward shift indicates a decrease in supply.

An increase in the price of agricultural land and the cost of fertilizers increases the cost of producing cranberries . This would lead to an inward shift of the supply curve. On the other hand, a decrease in the price of  agricultural land and the cost of fertilizers would lead to an outward shift of the supply curve.

The development of a new pest control for cranberry production would lead  to an outward shift of the supply curve as more cranberries can be produced.

Please check the attached image for a graph showing an increase in supply. To learn more about the supply curve, please check: brainly.com/question/1915798

5 0
3 years ago
Benson and Orton are partners who share income in the ratio of 2:3 and have capital balances of $60,000 and $40,000, respectivel
hjlf

Answer:

$48,800

Explanation:

Ratio = 2:3

Total investment:

= Benson capital + Orton capital + Ramsey capital

= $60,000 + $40,000 + $20,000

= $120,000

Total Equity of Ramsey:

= 40% of  Total investment

= 0.4 × $120,000

= $48,000

Old partners contribution:

= Equity of Ramsey - Ramsey capital

= $48,000 - $20,000

= $28,000

Benson’s capital balance after admitting Ramsey:

= Benson’s capital - Old partners contribution(2 ÷ 5)

= $60,000 - [$28,000 × (2 ÷ 5)]

= $60,000 - $11,200

= $48,800

6 0
3 years ago
What seems to be the main source of conflict between supervisors and the HR department at Sands Corporation? Explain.
Cloud [144]

Answer:

The main source of conflict that occured between the supervisors and the HR departments at Sand Corporation was the division of power that occurred between the Supervisors and the HR departments

Explanation:

The main source of conflict between the supervisors and the HR departments at Sand Corporation was the division of power that occurred between the Supervisors and the HR departments reason been that the supervisors feel that the power and authority that should have been with them or vested on them for hiring, compensation, appraisal, as well as training and pay increases has been appropriated and carried out by the HR departments.

WHILE the HR managers or HR departments on the other hand want to keep the authority to themselves because they believed and known that authority is a source of power.

4 0
3 years ago
Customer value creation is made possible by __________, the practice of building ties to customers based on a salesperson's atte
Vinil7 [7]
Relationship selling, or the concept of Relations Marketing.
4 0
3 years ago
Transactions processing systems monitor, collect, store, and process data generated from all business events. Select one: True F
Radda [10]

Answer:

TRUE

Explanation:

For example: consider a video game store where a customer comes in to buy a product then pay for it at the checkout counter. The staff goes to take the similar product from the store room and replaces it on the shelve. When the stock runs low, new products are ordered.

All the processes above involve the collection, storing and processing of the  the product and the system that monitors those process is known as Transaction Processing System.

4 0
3 years ago
Other questions:
  • The relationship between two variables that are unrelated can be shown by​ ______.
    8·1 answer
  • What law governs the release of student information?
    6·2 answers
  • Brand loyalty, usage rate, and perceived risk are studied with which possible base of market segmentation?
    15·1 answer
  • Green Valley Steel had sales of $1,000,000 and collections of $760,000, leaving a balance of $240,000 in accounts receivable as
    12·1 answer
  • Adapting your message to the task and audience requires empathy, which means putting yourself in the other person’s shoes. Emp
    8·1 answer
  • Nancy, an employee at MegaWorks Corp., has been on the job for only a week. She needs to ask the accountant some questions, but
    9·1 answer
  • When the defendant's property located within a state is seized to obtain payment of a judgment from a court from another state t
    12·1 answer
  • Please submit your idea for a practical, innovative, and marketable product or service (it’s just for a project)
    7·1 answer
  • A new business has total sales of $14,000, applied $1,350 in merchandise discounts, and had returns of $234. Calculate the busin
    9·1 answer
  • After the first two entries in the closing process have been recorded and posted, the debits and credits to Income Summary are $
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!