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elena55 [62]
2 years ago
7

On July 1, 20X8, Pair Logic Corporation acquires 75 percent of Systems Inc. common stock for its underlying book value. At the t

ime of acquisition, the fair value of the noncontrolling interest is equal to its proportionate share of book value of Systems. On January 1, 20X8 Systems reported common stock of $100,000 and retained earnings of $130,000. For the year 20X8, Systems reports the following items:
Before combinaiton (January 1 to June 30) After combination (July 1 to December 31)
Sales $150,000 $160,000
Cost of Goods Sold 90,000 93,000
Depreciation Expense 20,000 20,000
Other Expenses 15,000 17,000
Net Income 25,000 30,000
Dividends 15,000 18,000

Pair Logic uses the equity method in accounting for this investment. Based on the preceding information, what is the book value of shares acquired by Pair Logic on July 1, 20X8?

a. 191,250
b. 230,000
c. 240,000
d. 180,000
Business
1 answer:
Trava [24]2 years ago
8 0

Answer: d. $180,000

Explanation:

Using the equity method, the book value of shares is:

= (Opening common stock + Retained earnings + Net Income - Dividends ) * Percentage of shares acquired by Pair Logic

= (100,000 + 130,000 + 25,000 - 15,000) * 75%

= 240,000 * 75%

= $180,000

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Answer:

$1,295.03

Explanation:

To find the answer, we will use the present value of an annuity formula:

PV = A ( 1 - (1 + i)^-n) / i

Where:

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Finally, we plug the amounts into the formula, and solve:

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1,295.03 = A

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3 years ago
A depreciation adjustment would include a debit to _____________________ and __________________________ to _______________
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2 years ago
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Ede4ka [16]

Answer:

her expected gain is $45,000.

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If she loses the case she has to bear the cost incurred to prepare the case. So, the probability on the cost side is 1 but probability on the income side is 0.3 so we calculated the 0.3 probable income which is $120,000 after deducting the cost the lawyer will have expected gain of $45,000 only.

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discuss the importance of diversity in all its forms in an organization and provide specific examples/scenarios.
maria [59]

Answer:

Explanation below

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