1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Otrada [13]
3 years ago
9

On January 1, 2013, Deuce Inc. acquired 15% of Wiz Co.'s outstanding common stock for $62,400 and categorized the investment as

an available-for-sale security. Wiz earned net income of $96,000 in 2011 and paid dividends of $36,000. On January 1, 2014, Deuce bought an additional 10% of Wiz for $54,000. This second purchase gave Deuce the ability to significantly influence the decision making of Wiz. During 2014, Wiz earned $120,000 and paid $48,000 in dividends. As of December 31, 2014, Wiz reported a net book value of $468,000. For both purchases, Deuce concluded that Wiz Co.'s book values approximated fair values and attributed any excess cost to goodwill.
on deuce's december 31,2014 balance sheet, what balances was reported for the investment in Wiz coporation account?
Business
1 answer:
NemiM [27]3 years ago
7 0

Answer:

 <u> Investment Cost </u>

January 1, 2013  =                                     $62,400

January 1, 2014  =                                     <u>$54,000</u>

                                                                <u>  $116,400</u>

<u>   Fair Values    </u>      

25% of   $468,000                                <u>  $117,000  </u>

<em> On Deuce's December 31,2014 balance sheet, $116,400.00 will be reported for the investment in Wiz corporation account.   This is because the investment cost of $116,400 is lower when compare with fair value of  $117,000.</em>                            

                             

Explanation:

The carrying amount for investments is the lower of cost and fair  value.

You might be interested in
Select the items that describe what happens at the equilibrium price. Producers supply the exact goods that consumers buy. Consu
Mekhanik [1.2K]

The items that describes what happens at the equilibrium price are:


Producers supply the exact goods that consumers buy.

Consumers have enough goods, at the given price.

Producers used their resources efficiently.

Equilibrium pricing is when the items demanded match the items supplied. When this happens, the demand and good available equal each other, hence, equilibrium. The pricing is exactly where it should be for consumers to want and purchase the good or service.

6 0
3 years ago
Read 2 more answers
Select the correct answer. What does brand awareness of a product mean? A. the likelihood of a customer recognizing a brand amon
max2010maxim [7]
I believe the correct answer is D. Don’t hate me if I’m wrong
4 1
3 years ago
The overwhelming majority of existing businesses are
JulijaS [17]

The answer is C. sole proprietorships.

8 0
3 years ago
Read 2 more answers
In February 2018, Brilliant Industries purchased the Topaz Mine at a cost of $10,000,000. The mine is estimated to contain 500,0
morpeh [17]

Answer:

B. Depletion will be $950,000 during  2018

Explanation:

Cost           $10,000,000

Residual Value ($500,000)

Cost to be depleted $9,500,000

No. of Carats to be extracted over the life of mine 500,000

Per carat depletion (9,500,000/500,000)     $19

Depletion for the year 2018     $19*50,000=$950,000

This will be deducted from revenue as depletion for the year.So option B is correct.

8 0
3 years ago
Palace Company has two service departments and two user departments. The number of employees in each department is:Personnel 10C
joja [24]

Answer:

$3,483.17

Explanation:

Calculation for the amount of cost allocated to the Cafeteria under the step method

Using this formula

Allocation to Cafeteria=[Cafeteria/(Cafeteria+Producing Department A+Producing Department B)]×Budgeted costs

Let plug in the formula

Allocation to Cafeteria=[25/(25 + 308 + 287)] x $72,450

Allocation to Cafeteria=(25/520)×$72,450

Allocation to Cafeteria=0.0480769231×$72,450

Allocation to Cafeteria=$3,483.17

Therefore the amount of cost allocated to the Cafeteria under the step method would be $3,483.17

8 0
2 years ago
Other questions:
  • Cromwell enterprises is acquiring athens, inc. for $899,000. athens has agreed to accept annual payments of $210,000 at an inter
    7·1 answer
  • What is the principleof the law of supply ?​
    9·1 answer
  • Tanya Fletcher owns undeveloped land (adjusted basis of $80,000 and fair market value of $92,000) on the East Coast. On January
    5·1 answer
  • The IMA suggests​ that, when faced with an ethical​ dilemma, the first thing management accountants should do is call the​ IMA's
    7·1 answer
  • A business promises to pay the investor of $6000 today for a payment of $1500 in one year's time, $3000 in two years' time, and
    14·2 answers
  • During March, Adams Company had sales of $5,000,000, variable expenses of $3,000,000, and fixed expenses of $1,500,000. Assume t
    9·1 answer
  • True or False Question
    13·2 answers
  • Assume the Atlas Corporation is expected to pay a $5 cash dividend next year. Dividends are expected to shrink at a rate of 3% p
    5·1 answer
  • i have my first job interview in 4 days at a frozen yogurt shop. anyone with a job please tell me what to wear / how to answer c
    11·2 answers
  • A company’s resources are competitive assets that are owned or controlled by the company and include
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!