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sergeinik [125]
3 years ago
5

Green Corp. owns 30°10 of the outstanding common stock and 100°10 of the outstanding noncumulativenonvoting preferred stock of A

xel Corp. In Year 1, Axel declared dividends of $100,000 on its common stock and $60,000 on its preferred stock. Green exercises significant influence over Axel's operations. What amount of dividend revenue should Green report in its income statement for the year ended December 31, Year1?a. $0b. $30,000 c. $60,000 d. $90,000
Business
1 answer:
vampirchik [111]3 years ago
4 0

Answer:

c. $60,000

Explanation:

Provided information,

Green Corp owns 30% of the the common stock and 100% of preference share capital of Axel Corp.

Also, Green Corp is exercising significant influence on Axel Corp.

Thus, for accounting purpose Green Corp will use equity method as the investment is more than 20%.

Any dividend received from Axel Corp on common stock will be deducted from carrying value of investment in common stock, though dividend received on preference capital will increase the profits as will be added to income statement.

Thus, dividend recognized in Income Statement = $60,000 received on preference capital.

Correct answer is

c. $60,000

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Suppose the mean income of firms in the industry for a year is 75 million dollars with a standard deviation of 17 million dollar
Readme [11.4K]

Answer and Explanation:

Given:

μ = 75 million

SD = 17 million

Probability (x) raw data = 110 million

Computation:

= Probability (x) < 110 million

= Probability [(x-μ) / SD] < [(110 - 75) / 17]

[(x-μ) / SD] = Z

= Probability [z] < [(35) / 17]

= Probability [z] < [2.05882353]

Using z calculator:

P-value from Z-Table:  

Z score = 0.98024

Therefore, probability is 0.98024

4 0
3 years ago
Ladiator Apparel is the market leader in the sportswear industry. Though most of its resources are common to those of its compet
topjm [15]
D) the company’s raw materials
The reason being is that it’s the only option where it has more unique potential cause the other ones anyone could get
4 0
3 years ago
Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000. The com
solong [7]

Answer:

4 years

Explanation:

Payback period is the time in which a project returns back the initial investment in the form of net cash flow.

Initial Investment = $280,000

Net Income = $20,000

To calculate the net cash flows add bask the depreciation expense in Net income each year.

Depreciation = ($280,000 - $30,000) / 5 = $50,000

Net Cash Flow = $20,000 + $50,000 = $70,000

Payback period = Initial Investment / yearly cash flow = $280,000 / $70,000 = 4 years

5 0
3 years ago
A salesperson shows his broker an offer for one of his listings that has a good faith deposit in the form of a promissory note.
12345 [234]

Answer:

The seller must be informed when the offer is presented that the depositis a promissory note

Explanation:

A good faith deposit is one that is done by a buyer in which conditions are stated that could result in the loss of deposit by the buyer.

It is a deposit made by the buyer to show he intends to complete the payment later.

In this instance if there is a Goodwill deposit in form of a promissory note, the broker needs to be aware.

So that when he is bringing in a client he will consider the already existing deposit.

Deals that offer more deposit or full payment will be considered and the original buyer discarded.

8 0
3 years ago
Kincaid Company provided consulting services of $2,500 to a customer who paid $1,300 and promised to pay the remainder next mont
Anon25 [30]

Answer:

B. Cash 1,300  Dr, Accounts Receivable 1,200 Dr, Consulting Revenue 2,500 Cr

Explanation:

                             Kincaid Company

                                  Journal Entry

Date      Description                             Debit       Credit

              Cash                                      $1,300

                     <em>Accounts Receivable                      $1,200</em>

                     Consulting Revenue                        $2,500

6 0
3 years ago
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