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
bearhunter [10]
3 years ago
6

Assume an investor company acquires for $320,000 an 8% investment in the common stock of an investee company on February 15, 201

8. The investor determined the common stock of the investee has a readily determinable fair value. On December 31, 2018, the fair value of the 8% common stock investment is $340,000, and the investor company made made all of the appropriate adjustments in preparation of the annual financial statements. On March 1, 2019, the investor company acquires an additional 17% of common stock of the investee for $765,000, thereby increasing the investor's overall ownership interest to 25%.
Required
a. For this question only, assume instead that the investor determined, on February 15, 2018, that the common stock of the investee does not have a readily determinable fair value. In addition, the investor company determined that the additional 17% common stock purchase on March 1, 2019 does qualify as an observable price change in orderly transaction. Prepare the journal entries the investor company should record on March 1, 2019.
Note: If a journal entry is not required, select "N/A" as your answers for the drop-down options and leave the Debit and Credit answers blank (zero).
Description Debit Credit
To adjust value of investment account.
To record the purchase of additional stock.
b. For this question only, assume instead that the investor determined, on February 15, 2018, that the common stock of the investee does not have a readily determinable fair value. In addition, the investor company determined that the additional 17% common stock purchase on March 1, 2019 does not qualify as an observable price change in orderly transaction. Prepare the journal entries the investor company should record on March 1, 2019.
Note: If a journal entry is not required, select "N/A" as your answers for the drop-down options and leave the Debit and Credit answers blank (zero).
Description Debit Credit
To adjust value of investment account.
To record the purchase of additional stock.
Business
1 answer:
SIZIF [17.4K]3 years ago
8 0

Answer:

1.6 Million.

Explanation:

You might be interested in
At December 31, 2020 Bramble Corp. had 298000 shares of common stock and 9800 shares of 6%, $100 par value cumulative preferred
Vika [28.1K]

Answer:

the earning per common share is $3.83 per share

Explanation:

The computation of the earning per common share is shown below

= Net income ÷ weighted number of outstanding shares

= $1,143,000 ÷ (298,000 shares)

= $3.83 per share

We simply divided the net income from the  weighted number of outstanding shares so that the earning per share could be determined

hence, the earning per common share is $3.83 per share

5 0
3 years ago
Suppose housing prices and stock prices decline significantly and cause autonomous consumption spending to decrease by $200 bill
kirill [66]

Answer: The change will be $400 billion.

Explanation: The marginal propensity to consume (MPC) is used to explain that increase in consumption is as a result of increase in income.

To calculate how much the equilibrium real GDP will change:

STEP1: CALCULATE THE MULTIPLIERS

multipliers = 1 ÷ (1 - MPC)

Where MPC = 0.

Therefore;

Multipliers = 1 ÷ (1 - 0.5) = 1 ÷ 0.5

Multipliers = 2

STEP 2: CALCULATE HOW MUCH THE EQUILIBRIUM REAL GDP WILL CHANGE;

Multipliers × change in consumption spending

2 × $200 billion = $400 billion

Equilibrium real GDP will change with $400 billion

4 0
4 years ago
Can we treat all small businesses the same? Why or Why not?
Pepsi [2]

Answer:

Depends on what you define as small business, if you mean a mom and pop pharmaceutical store across the road that keeps the money within the family and has every member of the family working in the shop to create an infinite amount of revenue for themselves until they hit a profit, then sure. They contribute tax dollars to the community through supplying jobs and creating cheaper cost for locals, which gives incentive to buy more in bulk and thus creating more tax dollars. Unless you are talking about the man in the apartment building who makes home grade meals and sells them cheap to his community, then no. While he is contributing tax dollars all those dollars aren't going back into the community until he buys something with that money, and the people who spent that money just got  a tax free meal that 't go into the community didn't.

Explanation:

7 0
3 years ago
addresses unknown parameters in the real world that parallel descriptive measures of very large population? A. The sample mean /
Airida [17]

Answer:

The answer is "Option B".

Explanation:

Inferential statistics was its process through which data collection is used to conclude the property or even an implicit wave function. Its analysis infers these same features of inhabitants. Its purpose is to use statistical strategies to determine important assumptions regarding sample size, and  other choices were wrong which can be defined as follows:

  • In option A, it defines the average of the given values, that's why it is wrong.
  • In option C, It is used to0 describes a number of samples that's why it is wrong.
7 0
3 years ago
Paw Salon currently services an average of 74 pets per day. Observations in recent weeks show that its utilization is about 90 p
Liula [17]

Answer:

50 customers per day

Explanation:

For computing the capacity required customers per day, first, we have to  compute the current demand per day which is shown below:

Current demand = Average number of  pets per day × estimated percentage

= 74 pets × 60%

=  44.4 per day

Now the capacity required per day would be

= (Current demand per day) ÷ (1 -  capacity cushion percentage)

= 44.2 ÷ (1 - 0.12)

= 50.22 per day

3 0
3 years ago
Other questions:
  • ​Smokey's Sandwich Shoppe paid​ $3,000 for a 2minusyear insurance policy on March​ 1, 2018. The accountant forgot to make any ad
    9·1 answer
  • 3. Which of the following is an example of a goodwill message?
    15·1 answer
  • Jason’s company has always emphasized that every employee is an important part of the company’s success and does not highlight i
    13·1 answer
  • What may happen if your job does not require you to use the aptitudes you possess?​
    14·1 answer
  • What will happen to the U.S. Housing Market?
    10·1 answer
  • you own $750000 worth of stock, and you are worried the price may fall by year-end in 6 months. you are considering
    11·1 answer
  • A newspaper reports that the average price of new homes in a certain city had decreased, and the number of new homes sold had al
    13·1 answer
  • Volleyball helps people reach their fitness goals by __________. A. using teamwork to win B. improving balance and agility C. im
    13·2 answers
  • Jane Spring maintained this record of vehicle expenses for last year: gas, $845.96; oil, lube, miscellaneous, $68.85; insurance,
    7·2 answers
  • Jasper Company has 70% of its sales on credit and 30% for cash. All credit sales are collected in full in the first month follow
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!