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
Svetach [21]
3 years ago
9

Several years ago, a parent company acquired all of the outstanding common stock of its subsidiary for a purchase price of $400,

000. On the acquisition date, this purchase price was $100,000 more than the subsidiary's book value of Stockholders' Equity. The AAP was entirely attributable to Goodwill. Since the date of acquisition, the subsidiary has reported cumulative net income of $400,000 and paid $50,000 of dividends to its parent company. Compute the balance of the Equity Investment account on the parent's pre-consolidation balance sheet assuming that the Goodwill asset has not declined in value subsequent to the date of acquisition.
Business
1 answer:
Alex787 [66]3 years ago
8 0

Answer:

$750,000

Explanation:

Computation of the balance of the Equity Investment account on the parent's pre-consolidation balance sheet

EQUITY INVESTMENT ACCOUNT

Purchase price $400,000

Add Net income $400,000

Less Dividends ( $50,000 )

Balance of equity $750,000

($400,000+$400,000-$50,000)

Therefore the balance of the Equity Investment account on the parent's pre-consolidation balance sheet assuming that the Goodwill asset has not declined in value subsequent to the date of acquisition will be $750,000

You might be interested in
How can producers make the most profit? Check all that apply.
Ymorist [56]

Answer:

The answer is B, C, and E.

Explanation:

Saw this post and one other neither had the correct answer so i figured i would help anyone out that needs the correct answer.

4 0
3 years ago
A salesman at a music store always begins by showing his customers high-priced instruments. When the customers refuse these, the
quester [9]

Answer: Rejection-then-retreat approach.

Explanation: The musical equipment salesman is using the Rejection-then-retreat approach to sell his musical items. This method is used to frighten the customers with higher priced items then make them settle for lesser priced items.

4 0
3 years ago
Read 2 more answers
On November 30, the company received an invoice from the electric company for $200. The company will pay the invoice in December
harkovskaia [24]

Answer:

Utility expense Dr.                      $200

  Accounts payable Cr.                $200

(To record the entry for electric expense)

Explanation:

Given the amount of the invoice = $200

The expenses like Electricity expenses come under utility expenses so the incurred electricity expense will show that the utility expenses are debited and account payable is credited. Here the account payable is credited because the is not paid.

Thus, below is the entry as on 30th November.

Utility expense Dr.  $200

  Accounts payable Cr.    $200

(To record the entry for electric expense)

8 0
3 years ago
Perit Industries has $190,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternat
Wewaii [24]

Answer:

Please see attachment

Explanation:

Please see attachment

3 0
3 years ago
The depositors of JS bank were worried that the value of this​ bank's assets was less than the value of its​ liabilities, so the
MissTica

This expanding panic and rising flood of withdrawals is called Bank Run.

<u>Explanation: </u>

Bank run means many customers of the bank withdraw their deposits due to the fear that the bank might become insolvent. When many customers withdraw their funds then the bank might not be able to meet the withdrawals with the available funds.

This further increases the risk of the bank to default when all the customers withdraw their deposits. This is because the banks hold only little amount as cash in hand while the rest of the bank's wealth is invested in long term assets.

3 0
3 years ago
Other questions:
  • An article in the New Yorker magazine states, "the main burden of trade-related job losses and wage declines has fallen on middl
    8·1 answer
  • Susan started a cake decorating business that failed. She is convinced that she lacked the necessary funds to promote her busine
    13·1 answer
  • Which three report charts show how many Leads are in the Marketing pipeline based on Lead Status and what percent each Lead Stat
    9·1 answer
  • 7. Why might some construction workers be paid more than some teachers?<br>​
    7·1 answer
  • Arkensland is a highly industrialized countr. Prices have been steadily increasing over the last few years and inflation reached
    12·1 answer
  • WoodCore Inc. produces an entire line of office furniture at its manufacturing facility in the United States and then ships its
    6·1 answer
  • Compare tracking in affiliate marketing to that of e-mail and online advertising. What are the similarities?
    6·1 answer
  • The west coast of scotland has a warmer and more stable climate than areas at equal latitudes but further inland. It is also muc
    12·1 answer
  • Suppose buyers of rackets and tennis balls regard the two goods as complements. then an increase in the price of rackets will ca
    6·1 answer
  • The Smith home has an assessed value of $64,120, and their tax rate is 3.2%. What is their annual tax bill?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!