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FinnZ [79.3K]
2 years ago
9

Blossom, Inc. acquired 20% of Nash Corporation's voting stock on January 1, 2021 for $870000. During 2021, Nash earned $361000 a

nd paid dividends of $224000. Blossom's 20% interest in Nash gives Blossom the ability to exercise significant influence over Nash's operating and financial policies. During 2022, Nash earned $461000 and paid cash dividends of $124000 on April 1 and $124000 on October 1. On July 1, 2022, Blossom sold half of its stock in Nash for $621000 cash. Before income taxes, what amount should Blossom include in its 2021 income statement as a result of the investment?
Business
1 answer:
alexira [117]2 years ago
6 0

Answer:

$72,200

Explanation:

For computing the amount included in the income statement as an investment we need to applied the equity method which is shown below:

= Earned amount × given percentage

= $361,000 × 20%

= $72,200

We simply multiply the earned amount by Nash with the acquiring percentage i.e 20% so that the amount could come and the same is to be included in the income statement

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Planning to finance higher education helps people prepare for their financial future because it teaches them about
tensa zangetsu [6.8K]

Answer: (D) Investing in their future

Explanation:

  According to the given question, the planning for the financial higher education is the process that helps in preparing their specific financial future as it helps in teaches about investing in their future.

We can studying about the higher education as it helps in teaches us about the loan and the funds management so that we can also secure our future by studying the overall process that involve the steps of financial investing in the future.  

 Therefore, Option (D) is correct answer.

8 0
2 years ago
Gugenheim, Inc., has a bond outstanding with a coupon rate of 5.8 percent and annual payments. The yield to maturity is 7 percen
shusha [124]

Answer:

The market price if the bond has a par value of $2,000 is A. $1,790.11

Explanation:

The Market Price, PV of the Bond can be determined as follows :

PMT = $2,000 × 5.80% = - $116

P/yr = 1

YTM = 7 %

n = 14

Fv = - $2,000

Pv = ?

Using a financial calculator, the Market Price, PV is $1,790.1088 or $1,790.11.

8 0
3 years ago
In order to create more wealth and provide better services, some nations recognize that
Lemur [1.5K]
In order to create more wealth and provide better services, some nations recognize that A GOOD STRATEGY IS TO MINIMIZE INTERFERENCE WITH THE FREE EXCHANGE OF GOODS AND SERVICES.
Free exchange of goods and services will enhance the economic growth of a nation.
7 0
3 years ago
Paragas, Inc., is considering the purchase of a machine that would cost $370,000 and would last for 8 years. At the end of 8 yea
const2013 [10]

Answer:

The net present value of the proposed project is close to $19,544.65.

Explanation:

The net present value of the proposed project can be calculated as follows:

Step 1: Calculation of the proposed project's present value of saving of labor and other costs

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PVC = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PVC = Present value of the proposed project of saving of labor and other costs = ?

P = Proposed project's saving of labor and other costs = $96,000

r = required pretax return = 19%, or 0.19

n = number of years of the project = 8

Substitute the values into equation (1), we have:

PVC = $96,000 * ((1 - (1 / (1 + 0.19))^8) / 0.19)

PVC = $379,619.10

Step 2: Calculation of the proposed project's present value of working capital investment recovered at the end of the life of the machine

This can be calculated using the formula for calculating the present value as follows:

PVW = W / (1 + r)^n .......................... (2)

PVW = Present value of proposed project's working capital investment recovered at the end of the life of the machine = ?

W = Proposed project's working capital investment recovered at the end of the life of the machine = $4,000

r = required pretax return = 19%, or 0.19

n = number of years of the project = 8

Substitute the values into equation (2), we have:

PVW = $4,000 / (1 + 0.19)^8

PVW = $994.68

Step 3: Calculation of present value of the machine salvage value

This can be calculated using the formula for calculating the present value as follows:

PVS = W / (1 + r)^n .......................... (3)

PVS = present value of the machine salvage value = ?

W = machine salvage value = $52,000

r = required pretax return = 19%, or 0.19

n = number of years of the project = 8

Substitute the values into equation (3), we have:

PVS = $52,000 / (1 + 0.19)^8

PVS = $12,930.87

Step 4: Calculation of the net present value of the proposed project

Net present value = PVC - Cost of machine - Initial working capital investment + PVW + PVS

Net present value = $379,619.10 - $370,000 - $4,000 + $994.68 + $12,930.87

Net present value = $19,544.65

5 0
2 years ago
Determine which of the statements below accurately describe services provided by a bank. (Check all that apply.) Multiple select
Zanzabum

The statements that provide the bank services are that the depositors can use checks for withdrawing money, a record set up by a bank, and a deposit in a bank supported by a deposit ticket.

<h3>What is a bank account?</h3>

A bank account is a facility provided by a bank where the account holders can deposit their savings.

The services provided by banks to the account holders include the opening of saving or current accounts at any time, withdrawal of money by checks, monthly bank statements for tracking their money, can deposit the amounts in the form of coins, currency notes, fixed deposit facility, etc.

Therefore, the provided explanations in the last three options described the services given by banks.

Learn more about the bank account in the related link:

brainly.com/question/16674103

#SPJ1

8 0
2 years ago
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