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disa [49]
3 years ago
7

Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 20X1, for $20,000 and 2,000 shares of Baker, Inc.

common stock on July 1, 20X1 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 20X1. At the end of 20X1, the fair value of the Able stock was $18,000 and the fair value of the Baker stock was $28,000. The stocks were purchased for short-term speculation prior to the effective date of the change in accounting rules for equity investments. Perry owns 10% of each company. Perry should record the receipt of the Baker dividend as
Business
1 answer:
maksim [4K]3 years ago
4 0

Answer:

Debit Cash $2,400: Credit Dividends receivable $2,400

Explanation:

Date               Account Titles and Explanation     Debit    Credit

31 Dec 20X1   Cash                                                $2,400

                               Dividend receivables                            $2,400

                       (Record of the receipt of the Baker dividend)

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Rather than acquire an existing textile manufacturer in Jakarta, FauxFabric Inc. chose to establish new operations in Indonesia.
Arisa [49]

Answer: (A) Greenfield investment

Explanation:

 The greenfield investment is one of the type of FDI ( Foreign direct investment) that helps in constructing the various types of new production facilities in an organization.

The main objective of the greenfield investment process is to making the manage the investor control process and also form different types of opportunities for managing the partnerships in the market.

According to the given question, the Greenfield investment process is helps in establishing the various types of new operation in Indonesia and it is the form of foreign direct investment.

 Therefore, Option (A) is correct answer.

7 0
3 years ago
Joe's income is $300. He can buy 2 goods – Food and Shelter. a. (5 points) Write the budget constraint and draw the budget line
GaryK [48]

The budget constrain is how much of each good can Joe's buy and it's given by:

Income = P_f * Q_f +P_s * Q_s  

P_f = Price_of_Food

Q_f = Quantity_of_Food

P_s = Price_of_Shelter

Q_s = Quantity_of_Shelter

In case a):

300 = 5*Q_f(a) + 100*Q_s

in case b):

300 = 10*Q_f(b) + 100*Q_s

To draw each line, you can make a graphic in which the x axis is Q_s and y axis is Q_f

set Q_f = 0 and solve for Q_s which gives => Q_s = 3 so, in the x axis the line will start in Q_s = 3

the same, and solve for Q_f and it'll give =>

Q_f(a) = 60

Q_f(b) = 30

So, from the start in x axis in Q_s = 3 you draw the line (a) to the y axis Q_f(a) = 60 and you draw the line (b) to the y axis Q_f(b) = 30

To get the oportunity cost you have to divide the cost of what is given up (food) by what is gained (shelter).

Oportunity_Cost_Food(a) = 5/100 = 0.05

Oportunity_Cost_Food(b) = 10/100 = 0.10

As you can see, the oportunity cost of food increase

5 0
3 years ago
Luke is an ordained minister. Luke's salary from his employing church last year was $31,000. The church did not designate any of
nirvana33 [79]

Answer

$31,000

Explanation:

(c) $31,000

Explanation:

As per IRS for Earnings of Clergy, A licensed, commissioned, or ordained minister who performs ministerial services as an employee may be able to exclude from gross income the fair rental value of a home provided as part of compensation (a parsonage) or a housing allowance provided as compensation if it is used to rent or otherwise provide a home. In order to be able to exclude the housing allowance from income, the minister's employing organization must officially designate the housing allowance as such before paying it to the minister.The fair rental value of a parsonage or the housing allowance is excludable only for income tax purposes, and not for Self-employment tax purpose.

In the given case, the church did not designate any of Luke's salaries as a housing allowance. Hence it is not deductible from Gross Income for Income Tax Purposes and irrespective of designation or not, it is not deductible for self-employment tax.

Thus, Full salary of Luke i.e $31,000 must be included when figuring net income for self-employment tax.

7 0
3 years ago
Berry, the seller, wants Paul, the broker, to change from a single agency relationship to a transaction broker. Paul agrees to d
Scorpion4ik [409]

Answer:

Before the listing agreement is signed.

Explanation:

A listing agreement is a contract between a property owner and a real estate broker asking the real estate broker to get a buyer for his or her property. The property owner implements the listing agreement so as to empower the real estate broker to act in the capacity of the agent to the owner in the course of trying to sell the property. Generally certain commission is paid to the real estate broker by the property owner.

8 0
3 years ago
Why might you choose an investment with high risk instead of one with low risk?
NeX [460]

The reason of choosing of investment with high risk instead of one with low risk because the high risks stocks, bonds are having more returns as compared to low risks,  especially long term stocks.

<h3>What is high risk investment?</h3>

High risk investment is the one who have high chance of loss of capital or under-performance or have a great percentage of amount invested in some stocks.

Some high risk investments are Cryptocurrency, Individual Stocks, Initial Public Offerings, Venture Capital or Angel Investing, Real Estate and others.

Thus, The reason of choosing of investment with high risk instead of one with low risk

For more details about high risk investment, click here:

brainly.com/question/27627260

#SPJ4

8 0
2 years ago
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