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Vinvika [58]
3 years ago
5

On January 2, 2020, Howdy Doody Corporation purchased 18% of Ranger Corporation's common stock for $52,000. Based on its ownersh

ip, Howdy Doody Corp. cannot exert significant influence over the operations of Ranger Corp. Ranger's net income for the years ended December 31, 2020, and December 31, 2021, were $11,000 and $52,000, respectively. During 2020, Ranger declared and paid a dividend of $68,000. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $74,000. How much should Howdy Doody show in the 2020 income statement as income from this investment
Business
1 answer:
Arlecino [84]3 years ago
8 0

Answer:

The Total amount is shown in the income statement $34,240

Explanation:

The computation of the amount that should be presented in the 2020 income statement is shown below:

Dividend collected by Howdy Doody corporation (18% of $68,000) $12,240

rise in Fair value of Stock credited to the income statement ($74,000 - $52,000) $22,000

The Total amount is shown in the income statement $34,240

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Your father is about to retire, and he wants to buy an annuity that will provide him with $91,000 of income a year for 25 years,
Elena L [17]

Answer:

Present Value of Annuity is $1,263,487

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where

P = Annual payment = $91,000

r = rate of return = 5.15%

n = number of years = 25 years

PV of annuity = $91,000 x [ ( 1- ( 1+ 0.0515 )^-25 ) / 0.0515 ]

PV of Annuity = $1,263,487

4 0
3 years ago
Assume that banks keep 10% of deposits as reserves. Households hold money such that the currency-deposit ratio is 80%. The money
Vladimir [108]

Answer:

b. 2

Explanation:

The computation of the money multiplier is shown below:

Money multiplier is

= (1 + currency deposit) ÷ (reserves + currency deposits)

= (1 + 0.80) ÷ (0.10 + 0.80)

= 1.8  ÷ 0.9

= 2

hence, the money multiplier is 2

Therefore the correct option is b. 2

We simply applied the above formula so that the correct value could come

And, the same is to be considered

6 0
3 years ago
During 2017 the inflation rate increased slightly but remained in the​ "comfort zone" and the unemployment rate was low. Why mig
goblinko [34]

Answer:B It thought that unemployment was a greater problem than the rising inflation rate

Explanation:

Inflation is the continuous rise in price of goods and services which is as a result of large volume of money in circulation used for the few available goods and services.

Unemployment is a situation where all that are willing and capable of being employed are unable to get employment.

In the above scenario lowering Interest rates will increase the volume of money in circulation which will invariably increase inflation and we equally increase level of investment as the cost of fund will be cheaper thereby lowering unemployment.

This action means unemployment is of greater problem than rising inflation.

It does not mean inflation is of more concern than unemployment otherwise it will have increase the interest rate, it will make loanable fund demanded to exceed supply and the quantity of money in supply will increase.

7 0
3 years ago
A commitment whereby the underwriter agrees to purchase any portion of an issue offered to existing shareholders under a rights
bekas [8.4K]

A commitment whereby the underwriter agrees to purchase any portion of an issue offered to existing shareholders under a rights offering that is left unsubscribed is known as a stand-by commitment.

Commitment means the consent of the backstop parties under the Backstop Rights Purchase Agreement, and purchases of all rights offering shares that exceed the Sopris Senior Note Commitment that the rights offering participants do not purchase in accordance with the rights offering.

Commitment: With firm commitment underwriting, the underwriter guarantees that the issuer will purchase all securities for sale, regardless of whether they can be sold to the investor. This is the most desirable arrangement as it immediately guarantees all the money of the issuer.

Commitment usually refers to the insurer's agreement to assume all inventory risk. A firm commitment also means agreeing to buy and sell all IPO securities directly from the issuer. Other uses of commitments relate to loans and derivatives.

Learn more about commitment here: brainly.com/question/472211

#SPJ4

6 0
2 years ago
Some goods can be produced at low cost only if they are produced in large quantities. this phenomenon is called
I am Lyosha [343]
I believe your answer is:

economies of scale
3 0
3 years ago
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