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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.

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6 0
3 years ago
Which of the following terms refers to a cloud computing feature that allows for automatic allocation of computing resources in
slega [8]

Answer: A - Rapid elasticity

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Those who provide guidelines for cloud computing recommend tools like monitoring and audit trails to tightly control all of the diverse requests and transactions that happen in the provision of cloud services, and the rapid elasticity that provides so much benefit to those who use the cloud.

7 0
3 years ago
It is always possible to identify all the causes of a problem completely. please select the best answer from the choices provide
Rasek [7]

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<h3>What is problem solving?</h3>

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Hence, It false that the causes of a problem can always possible to identify completely.

Learn more about problem solving here : brainly.com/question/23945932

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8 0
2 years ago
On July 1, 2017, Crane Inc. made two sales.
nordsb [41]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

4 0
2 years ago
Smith is a CPA. His neighbor, Jones, asks him to prepare his tax return. Jones and Smith are casual friends. Smith prepares the
kati45 [8]

Answer:

Jones is liable to pay.

He is liable to pay to the tune of $1000. This may be negotiated however if it is not fair.

Explanation:

See the following points

  • The question above is an example of Implied At-law contracts. (We will get to the definition of this in a bit).
  • A contract is a legally binding agreement that recognises and governs the rights and duties of the parties to the agreement. A contract is legally enforceable because it meets the requirements and approval of<u> the Law</u>. From the above definition it is clear that two people may actually be engaging  in a contract without knowing it.
  • The law defines that a contract is.
  • Contracts may be Express or Implied.
  • Express contracts are simply contracts that are stated expressly, or openly, in either writing or orally, at the time of contract formation.
  • Implied contracts are created when two or more parties have no written contract.
  • There are two types of implied contracts:

  1. Implied In-Fact Contracts: these are contracts which create an obligation between the parties based on the facts of the situation. For example, assume your neighbor hires you to wash his car every Friday for the entire holidays. You wash your neighbor’s car for the first four weekends of the holidays and get paid on Friday morning each time. The fifth Friday you wash the car and when you arrive at your neighbor’s house for your pay, your neighbor refuses to pay you.                                           The law will infer that there is a contract between you and your neighbor, even though you never put anything in writing. This is an implied in-fact contract.

       2. The other type of Implied contract is that which is Implied At-Law

In the case between Jones and Smith, the law imposes a duty to perform a contract, and will enforce such a contract even against a person’s will, where the situation is such that without this legal intervention, one party would be <u>unfairly enriched</u> or advantaged by another party’s action.

  • In the question above, Smith is a CPA. He is qualified in every respect to carry out Professional Tax services. His services may be relied upon with a great degree of confidence.
  • If Jones had not filed those tax returns, he probably would have lost monies that should have accrued to him from the government.

This type of agreement is also considered a quasi-contract. A quasi-contract occurs where the law imposes an obligation upon the parties where in fact the parties did not intend to enter into a contract and made no promise to perform.

However, because one party would be unjustly enriched by another party’s action, the beneficiary of those actions must make restitution or pay fair value for the services provided, even though there was never any intention to enter into an agreement.

Cheers!

4 0
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