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Vedmedyk [2.9K]
2 years ago
9

On January 2, 2020, All Good Company purchased 6,000 shares of the stock of Big Bad Company, and DID obtain significant influenc

e. The investment is intended as a long-term investment. The stock was purchased for $10.00 per share, and represents a 30% ownership stake. Big Bad Company made $450,000 of net income in 2020, and paid dividends to All Good Company of $40,000 on December 15, 2020. Big Bad Company's stock was trading on the open market for $15.50 per share at the end of the year. Use this information to determine the book value of the investment that should be reported at year end by All Good Company. Round to nearest whole number (no cents).
Business
1 answer:
Yuri [45]2 years ago
8 0

Answer:

$155,000

Explanation:

Calculation to determine the book value of the investment that should be reported at year end by All Good Company

Initial investment (6,000* $10.00 per share) $60,000

Add: Net income ($450,000*30%) $135,000

Less: Dividend ($40,000)

Ending balance of investment $155,000

($60,000+$135,000-$40,000)

Therefore the book value of the investment that should be reported at year end by All Good Company is $155,000

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Explanation:

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As we know that

Present value = Future value ÷  (1 + rate of interest)^time period

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Customers are more likely to tell their friends about negative experiences with companies than positive ones because:
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There is more drama involved in unmet expectations.

The reason why customers are more likely to tell their friends about negative experiences with companies than positive ones is that humans often remember the hateful things said than the nice things

Also, when customers are satisfied with one's service, they rarely tell others. whereas an unsatisfied customer would tell others about his or her bad experience due to unmet expectations.

Logically, customers would have bigger impressions in their mind when they have bad experiences reason companies work on strengthening and improving their customer experience team.

Learn more at : brainly.com/question/11437477

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