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Hatshy [7]
3 years ago
9

At the beginning of the current year, Martin Corporation purchases 20% of the outstanding shares of Foster Company for $200,000

which gave Martin the ability to significantly influence Foster. The price paid reflected Foster's book and fair values of its assets and liabilities. During the current year, Foster reports net income of $25,000 and declares dividends of $15,000. At the end of the current year, what amount should Martin report as investment income from its ownership of Foster's shares?
Business
1 answer:
ki77a [65]3 years ago
3 0

Answer:

$5,000

Explanation:

Calculation to determine what amount should Martin report as investment income from its ownership of Foster's shares

Using this formula

Amount to be reported as investment income=Net income*Percentage of outstanding shares purchased

Let plug in the formula

Amount to be reported as investment income=$25,000 x 20%

Amount to be reported as investment income= $5,000

Therefore The amount that Martin should report as investment income from its ownership of Foster's shares is $5,000

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Answer:

$196,730

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A =\$191,000*(1+(0.06*0.5))\\A=\$196,730

The company will need to pay $196,730.

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A reduction in the number of kanbans (given a constant container size) requires: Group of answer choices an increase in lead tim
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Answer: a reduction in safety stock and/or lead time

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7 0
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1.different types of socialization?​
patriot [66]

Answer:

Primary and secondary

Explanation:

Generally there are 5 types of socialisation.

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2. Secondary

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4. Development

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But the common are primary and secondary

6 0
3 years ago
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A lender uses a credit report to _____.
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Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the
arsen [322]

Answer:

2nd January

Dr Machinery              $178,000

  Cr Cash                    $178,000

( to record the purchase of used machine)

3rd January

Dr Machinery              $4,000

  Cr Cash                    $4,000

(to capitalized the cost of wire electricity and installation to put the purchased machine in a ready-to-use stage).  

Explanation:

- According to the information, all the expenses relating to the purchase of used machine are in cash. Thus, Cash is credited at the total amount of $182,000, in which $178,000 is credited in 2nd January to record the purchased price and the other $4,000 (2,840 + 1,160) is credited in 3rd January.

- Under GAAP, the recorded costs of a purchased fixed asset should included all the costs incurred which are necessary to bring the fixed asset to a ready-to-use stage. As wire electricity cost & cost for securing the machine in its position are all necessary for the machine's operation, these costs should be capitalized.  

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