Answer:
2) Debit to Cash (for dividends received from the investee), and a Credit to Dividend Revenue.
Explanation:
Whenever the investment is made in shares of a company where the investor can exercise significant influence, then equity method is used.
Under equity method, it is that all incomes of investee company are incomes of investor company.
And any amount of income received as a distribution is deducted from the carrying value of investment, as reduces the cost of investment.
Thus, any dividend received is debited and investment account is credited.
Dividend is never treated as dividend revenue.
Thus, option 2 is not correct.
Answer:
If Tom is single, he can claim THE $250,000 CAPITAL GAINS EXEMPTION.
Explanation:
Capital gain taxes are taxes on any profit you make from the sale of something, such as a house. These taxes apply unless you upgraded to a home with a more expensive purchase price.
With the passage of the taxpayer relief act, individuals can exclude up to $250,000 of capital gains from taxation and married couples can exclude up to $500,000.
To qualify for the home sale capital gains tax exemption, one must pass the use test (looking at whether one used/lived in one's home). One must have owned and lived in the residence for at least two out of the last five years before the sale.
Therefore, since Tom is single and has lived in his home for the past four years and wants to sell, he qualifies for the exemption and can claim THE $250,000 CAPITAL GAINS EXEMPTION.
Answer:
a. A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.
Explanation:
The derivative contract is a contract in which the contract is to be done between two or more parties regarding the value i.e. depend upon the financial asset i.e. underlying. It involves the bonds, commodities, etc
So according to the given options, the option a is correct as long position is a bet in which the number is to be decline while on the other hand in the short position the number would increase
Complete Question:
1. Select the correct statement regarding relevant costs and revenues.
A. Sunk costs are not relevant for decision-making purposes.
B. Relevant costs are frequently called unavoidable costs.
C. Direct labor is an example of a unit-level cost.
D. Only variable costs are relevant for decision making.
Answer:
1. A
2. D
3. B
Explanation:
1. The correct statement regarding relevant costs and revenues is that sunk costs are not relevant for decision-making purposes. Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
2. Expected future revenues that differ among the alternatives under consideration are often referred to as differential revenues. It is the difference in revenues among two (2) alternatives, which would influence decision making.
3. The benefits sacrificed when one alternative is chosen over another are referred to as opportunity costs. It is also referred to as alternative forgone.
<em>For example, Tony gives up going to see a new movie at the cinema in order to prepare for an examination, so as to get a good grade</em>.
Answer:
Answer - A
Explanation:
SkillsUSA has an automotive "skill" in which students in high school can learn about the automotive industry.