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
aleksley [76]
4 years ago
13

Peel Co. received a cash dividend from a common stock investment. Should Peel report an increase in the investment account if it

accounts for the investment as held-for-trading or uses the equity method of accounting?
Business
1 answer:
Paraphin [41]4 years ago
5 0

Answer:

No, the investment is not increased in any accounting method so it must not be increased.

Explanation:

The reason is that in the cost method, the investment remains the same because the return is treated as income.

In the held for trading, the return received is treated as decrease in the investment because the dividend received decreases the fair value of the investment. Similarly in the equity method the dividend received is treated as cash withdrawal or we can say that dividend received decreases the fair value of the investment.

You might be interested in
The upper-right number on a check that helps you keep track of checks written is called a(n) _____.
Anna007 [38]

its' the Check Number – Each time you write a check, even for an electronic payment by phone, you should use the next available number in sequence and be sure to record the necessary information in your checkbook.

6 0
3 years ago
Bedrock Company reported a December 31 ending inventory balance of $414,000. The following additional information is also availa
Paha777 [63]

Answer:

The corrected balance of ending inventory is $391200 and option d is the correct answer.

Explanation:

The amount of goods sent on consignment by Bedrock of $72400 are already included in the inventory value. These goods belong to Bedrock, the consignor, until they are sold off by the consignee. Thus, no adjustment is needed for this amount.

The ending inventory balance only needs one adjustment that is for office supplies. The office supplies are office consumables and a separate asset than the inventory of the business which is solely for the purpose of selling operations. Thus, the office supplies amount will be deducted from the inventory value.

The correct balance = 414000 - 22800 = $391200

3 0
3 years ago
Consumers look closely at service quality when comparing competing services because
Lesechka [4]
Services are very difficult to evaluate. <span />
3 0
4 years ago
Which of the following choices is not a step that can reduce your spending?
inn [45]
The answer is d) purchasing reduced fat lattes during the week
8 0
3 years ago
Read 2 more answers
What amount is a reasonable tip for an airport skycap?
Nikitich [7]
At least $2 per bag as most airlines don't pay.
3 0
3 years ago
Read 2 more answers
Other questions:
  • The president of the United States receives an annual salary of $400,000. Derek Jeter, shortstop for the New York Yankees, recei
    6·1 answer
  • Glen is a carpenter who performs home repairs and improvements for his customers. From the perspective of operations, the money
    14·1 answer
  • What’s the difference between a subway and a train?
    10·1 answer
  • The weighting of the factors that search engines use to decide which URLs appear first on searches for a particular search term
    6·1 answer
  • Which of the following is NOT a part of the free enterprise system?
    6·1 answer
  • Which of the following statements are TRUE about credit scores?
    12·2 answers
  • A company opts not to purchase more resources, since additional output will not increase their revenue.Which BEST describes this
    11·1 answer
  • synovec co. is growing quickly. dividends are expected to grow at a rate of 30 percent for the next three years, with the growth
    8·1 answer
  • What kind of tax system does the United States use?​
    15·1 answer
  • Honda motor co. prices its whole line (from the $15,000 honda fit economy sedan to the $40,000 pilot suv) so that it offers high
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!