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madreJ [45]
3 years ago
11

Critically examine the maximax criteria for decision making under uncertainty         ​

Business
1 answer:
Levart [38]3 years ago
6 0

Explanation:

A decision under uncertainty is when there are many unknowns and no possibility of knowing what could occur in the future to alter the outcome of a decision.

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If inc. jones reported net income of $60,000 during the period. rex will report its 30% of the earnings with a <u>credit</u>  to earnings from equity method investment in the amount of <u>$18,000</u>.

<h3>Equity method investment</h3>

Since rex. co hold 30 percent of the shares of stock in jones inc which in  turn means that jones will report 30% of the earning (net income) which is $18,000 calculated as (30%×$60,000).

The amount of the earnings  which is $18,000 will be credited to earning from  equity method investment.

Equity method investment=30%×$60,000

Equity method investment=$18,000 (credited)

Therefore If inc. jones reported net income of $60,000 during the period. rex will report its 30% of the earnings with a <u>credit</u>  to earnings from equity method investment in the amount of <u>$18,000</u>.

Learn more about Equity method investment here:brainly.com/question/18187746

#SPJ1

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