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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

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If the marginal cost of production is greater than the average cost, in what direction must the average cost be changing, if any
ziro4ka [17]

Answer:

b) The average cost must be rising.

Explanation:

Assuming that the entity produce 4 units and its total cost is $16 so average cost per unit is $4 and  now the same entity has produced the 5th unit at $5 so the average cost now per unit is (16+5)/5=$4.2

So based on the above discussion, it can be concluded that average cost increase when the marginal cost of production is increased.

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6 0
3 years ago
The only skill required of managerial accountants is that they have a solid knowledge of both financial and managerial accountin
slava [35]

Answer:

It's false

Explanation:

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2 years ago
Select two skills from the list in the article that you feel you have to offer in the workplace . Discuss the importance of thes
laiz [17]

Answer:

Two skills from the list in the article are Communication and Analytical and problem-solving. Why are these things important? Well because almost every job available today involves dealing with other people such as employers, coworkers, or clients. Good employees need to be able to express themselves clearly. They also need to understand what others are saying. Companies want employees who can speak and write correctly and professionally. Whether using the phone, email, social media, or speaking in person, communication skills are necessary to succeed in business. Employers will also want to have employees who can solve issues easily and effectively. Knowing how to analyze and fix problems is a skill that will make workers successful in their jobs.

4 0
3 years ago
Stock A has an expected return of 17.8 percent, and Stock B has an expected return of 9.6 percent. However, the risk of Stock A
MrRissso [65]

Answer:

13.70%

Explanation:

The expected return of a portfolio is said to be the weighted average of the returns of the individual components,

Given that:

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Stock B has an expected return = 9.6%

the risk of Stock A as measured by its variance is 3 times that of Stock B.

If the two stocks are combined equally in a portfolio;

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Expected return for stock B = 0.50 × 9.6%

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Expected return of the portfolio =  13.70%

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