On January 1, 20X6, Plus Corporation acquired 90 percent of Side Corporation for $180,000 cash. Side reported net income of $30,000 and dividends of $10,000 for 20X6, 20X7, and 20X8. On January 1, 20X6, Side reported common stock outstanding of $100,000 and retained earnings of $60,000, and the fair value of the noncontrolling interest was $20,000. It held land with a book value of $30,000 and a market value of $35,000 and equipment with a book value of $50,000 and a market value of $60,000 at the date of combination. The remainder of the differential at acquisition was attributable to an increase in the value of patents, which had a remaining useful life of five years. All depreciable assets held by Side at the date of acquisition had a remaining economic life of five years. Plus uses the equity method in accounting for its investment in Side. Based on the preceding information, the increase in the fair value of patents held by Side is:
Answers
Answer:
$25,000
Explanation:
Plus corporation acquired 90% of Side Corporation for $180,000 cash.
Net income = $30,000
Dividend for 3 years = $10,000
Common stock outstanding = $100,000
Retained earnings = $60,000
Fair value = $20,000
Book value of land = $30,000
Market value of land = $35,000
Book value of equipment = $50,000
Market value of equipment = $60,000
Required:
Find the increase in the fair value of patents held by Side Corporation.
To find the increase in the fair value of patents, use:
Increase in fair value = Fair value of corporation - Total value without patent.
Where
Fair value = $180,000 + $20,000 = $200,000
Total value without patent = common stoc(100,000) + retained earnings(60,000) + equipment adjustment($60,000 - $50,000 = $10,000) + land adjustment($35,000 - $30,000= $5,000) =
$100,000 + $60,000 + $10,000 + $5,000 = $175,000
Therefore,
Increase = Fair value of corporation($200,000) - Total value without patent($175,000) = $25,000
The increase in the fair value of patents held by Side Corporation is $25,000
Related Questions
Briefly explain the weaknesses of the RSA's Industrial Development Zones?
Answers
Take a moment to think about your values around money. Then, look at the top three to four categories where you are spending most of your beans. How do these choices reflect your values around money?
Answers
Answer:
I spend the majority of my money on my children and I think they deserve it
what is the explanation of how 3D printing gives SpaceX a competitive advantage
and
Exploration of how AI could be used to enhance SpaceX's 3D printing capabilities
Answers
3D printing offers your organization a genuinely necessary upper hand. It permits you to create models quicker, decreases the expense of creation, requires less info (HR and gear), and diminishes above.
SpaceX involves 3D printing in their designing and assembling processes, including printing parts for rocket motors, spouts, and primary parts for the Bird of Prey 9 and Hawk Weighty rockets and Mythical serpent shuttle.
The improvement of an ML framework that utilizes PC vision to screen the creation cycle and fix material dealing with shortcomings continuously. The fundamental benefits of 3D printing are diminishing expenses, less waste, decreased time, getting an upper hand, lessening mistakes, classification, and creation on request.
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Your neighbor found out his uncle left him $450,000 which he will receive on his 18th birthday next year. If the real interest rate is 5%, what is the present value of his inheritance
Answers
The present value of his inheritance is $428,571.43.
The present value (PV) is the current value of a future stream of cash flows using a specified rate of return. To obtain the present value, the future cash flows are discounted at the discount rate.
The formula for calculating the present value is given as follows:
PV=FV 1/{(1+r)^{n}}
PV = present value
FV = future value
r = rate of return
{n} = number of periods
However, we can use an online finance calculator to determine the present value as below:
Data and Calculations:N (# of periods) = 1 year
I/Y (Interest per year) = 5%
PMT (Periodic Payment) = $0
FV (Future Value) = $450,000
Results:
Present Value (PV) = $428,571.43
Total Interest $21,428.57
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DMC Company manufactures a standard and a custom version of a boat engine. Overhead costs include a significant amount of indirect labor and other costs related to moving materials and setting up machines for each batch of engines that are produced. The rest of the overhead is mostly facility-based. The actual activity for a year was as follows:
Total Standard engines Custom engines
Engines produced 3,000 2,500 500
Machine hours 6,000 4,800 1,200
Batches of products 200 100 100
DMC has used machine hours in the past to allocate all overhead costs. Which of the following statements is true given the data above, if DMC used machine hours as the allocation base for the current year?
a. DMC under allocated overhead costs to the standard engines.
b. DMC paid more for overhead costs than if it used activity-based costing.
c. DMC over allocated the overhead costs to the standard engines.
Answers
Answer:
Hence the correct option is option c. DMC over-allocated the overhead costs to the standard engines.
Explanation:
DMC over-allocated the overhead costs to the quality engines
All overheads have now been allocated within the ratio of machine-hours used i.e. 4:1
If however, ABC system were used, overheads associated with found out would are allocated within the ratio of batches i.e. 1:1
And hence, more overheads would are allocated to custom engines and fewer to plain engines.
The amount purchased overheads will remain equivalent. The systems are only used for the allocation of overheads.
The following data pertain to an investment proposal (Ignore income taxes.):
Cost of the investment $35,000
Annual cost savings $12,000
Estimated salvage value $6,000
Life of the project 5 years
Discount rate 18%
Required:
Determine the appropriate discount factor(s) using the tables provided.
Answers
The net present value of the proposed investment is closest to $5,146.
Net present value = Present value of cash-flows - Initial investment
Given Information
PV of cashflows at 18%
Cash flows PV at 18% P.V. of cash-flows
$12,000 (Cost saving) 3.127 $37,524
$6,000 (Salvage) 0.437 $2,622
Total $40,146
Net present value = $40,146 - $35,000
Net present value = $5,146
Therefore, the net present value of the proposed investment is closest to $5,146.
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On the 24th, a shooting incident occurred at a high school in St. Louis, Missouri, my country. A 19-year-old gunman opened fire on the campus, causing 2 deaths and 7 injuries, and was eventually shot dead by the police.
On October 25, St. Louis Mayor Tishaura Jones said that gun violence continues to take the lives of children and children in our country, and its severity is enough to become a "national emergency" and the government should take action. Police said at a news conference that day that the gunman was Orlando Harris, a 19-year-old male who just graduated from the high school last year.
Answers
The deaths at the high school in St. Louis, Missouri, United States show that an argument can indeed be made for tighter gun controls in the country.
Should there be tighter gun controls in the United States?The most recent tragedy that resulted from gun violence in the United States, was the killing of two people at the Central Visual and Performing Arts High School, St. Louis, Missouri, by a previous student of the school.
Over the years, there have been other instances of gun violence in American schools including the shooting at Uvalde, Texas that led to the deaths of 19 children.
The United States has the highest rates of gun ownership in the entire world as well as one of the highest rates for mass shooting. This means that there must be a correlation between the two. Nations that have tighter gun controls have lower rates of mass shooting.
There is therefore a good enough argument that the United States should introduce stricter and tighter gun controls in order to reduce the incidence of mass shootings, especially at schools.
The rest of the question is:
Does this shooting add more evidence for the argument for tighter gun control or less?
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Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: Current ratio Net Profit margin 2017 3.1 to 1 22% 2016 2.0 to 1 18% Required: SHOW YOUR WORKINGS 1- Examine Harrison's ratios. Is the change in the current ratio favorable or not? Explain your answer. (2 points) 2- Examine Harrison's ratios. Is the change in the net profit margin favorable or not? Explain your answer. (2 points)
Answers
The current ratio has increased from 2.0 to 1 in 2016 to 3.1 to 1 in 2017. A higher current ratio indicates that the company has more current assets available to pay off its current liabilities.
To determine whether the change in the current ratio is favorable or not, we need to compare the ratios for 2017 and 2016.
Current Ratio = Current Assets / Current Liabilities
2017 Current Ratio = 3.1 to 1
2016 Current Ratio = 2.0 to 1
This is generally seen as favorable, as it suggests that the company is in a better position to meet its short-term obligations. Therefore, the change in the current ratio is favorable for Harrison Company.
To determine whether the change in the net profit margin is favorable or not, we need to compare the ratios for 2017 and 2016.
Net Profit Margin = Net Profit / Total Revenue
2017 Net Profit Margin = 22%
2016 Net Profit Margin = 18%
The net profit margin has increased from 18% in 2016 to 22% in 2017. A higher net profit margin indicates that the company is generating more profit for each dollar of revenue it generates. This is generally seen as favorable, as it suggests that the company is more efficient in managing its costs and generating profit. Therefore, the change in the net profit margin is favorable for Harrison Company.
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In a personal budget, which of the following is considered to be a fixed expense? A. Dinner at a restaurant B. A movie Ticket C. A personal trainer D. Apartment rent
Answers
Answer: Personal Trainer
Explanation: It's a personal budget.
At the end of each month, a company pays its employees. Payroll information below is for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January. Salaries $ 1,000,000 Federal and state income taxes withheld 170,000 Federal unemployment tax rate 0.80 % State unemployment tax rate (after FUTA deduction) 5.40 % Social Security (FICA) tax rate 7.65 %
Required:
Record salaries expense and payroll tax expense for the January pay period.
Answers
Answer:
January 31, 202x, wages expense
Dr Wages expense 1,000,000
Cr Federal income taxes withheld payable 170,000
Cr FICA taxes withheld payable 76,500
Cr Cash 246,500
Taxes are generally paid the next month, that is why they are recorded as payable. This applies to both withheld taxes and payroll taxes.
January 31, 202x, payroll expense
Dr FICA taxes expense 76,500
Dr FUTA taxes expense 8,000
Dr SUTA taxes expense 54,000
Cr FICA taxes payable 76,500
Cr FUTA taxes payable 8,000
Cr SUTA taxes payable 54,000
Hi I need marketing plan draft
Answers
Answer:
hi..i also need marking plan draft
Ken has always been a nonresident of California. On March 1, 2019, he sold a California rental property in an installment sale. During 2019 and 2020, he received installment proceeds comprised of capital gain income and interest income. Which of the following is incorrect regarding the capital gain income?
Answers
The incorrect statement regarding the capital gain income of Ken is D. California taxes the installment proceeds received by a nonresident to the extent the income from the sale was from a California source.
What is capital gain income?Ken's capital gain income is the increase in his California rental property's value. Capital gain is realized when Ken sells the property.
Two types of capital gain income:Short-term (one year or less)Long-term (more than one year).Sources of Capital Gain Income or Loss:
As profits from the sale of a capital asset, such as Ken's California rental property, shares of stock, a business, a parcel of land, or a work of art, capital gains are taxable. The opposite of a capital gain is called a capital loss. A capital loss arises when an asset is sold at price less than its basis value.
Answer Options:A. The capital gain income is taxable by California in both 2019 and 2020 because the property was located in California.
B. The capital gain income is taxable by California only in 2020 because the property was located in California.
C. The interest income is not taxable by California and has a source in Ken's state of residence.
D. California taxes the installment proceeds received by a nonresident to the extent the income from the sale was from a California source
Thus, the incorrect statement about the capital gain income is Option D.
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During the coming year, Colgate expects an increase in variable manufacturing costs of $8 per unit and in fixed manufacturing costs of $35,000. (a) If sales for 2015 remain at 13,000 units, what price should Colgate charge to obtain the same profit as last year? Round to the nearest cent.
Answers
Answer: $130.69
Explanation:
Colgate made a Net Income of $167,000 in 2014 and sold 13,000 units.
Variable costs were $663,000 and fixed costs were $730,000.
Variable costs are to increase by $8 per unit and fixed costs by $35,000.
Price to sell at to maintain same profit as last year will be x
167,000 = 13,000x - (Old + New Variable cost) - ( Old + New Fixed Cost)
167,000 = 13,000x - (663,000 + (8* 13,000)) - ( 730,000 + 35,000)
167,000 = 13,000x - 767,000 - 765,000
167,000 = 13,000x - 1,532,000
13,000x = 1,699,000
x = 1,699,000/13,000
x = $130.69
"Group decision making is better". Do you agree or disagree with the statement? Give 3 reasons why do you say so?
Answers
Answer:
I agree because it make the group bring out more ideals
sometimes group decision make some people to voice out their problems
group decision help organization and firms to operate in good aims
what is a resume and why is it important to adopt a you attitude when preparing one?
Answers
Answer:
A resume is a form you fill out for your job, giving information on why you would be good at the job and important traits about you.
The four functions of management Multiple Choice provide a decision-making framework in order to select new strategies. provide a framework for designing innovative products. are generally considered to be outdated by current management trends. are a step-by-step process that needs to be followed. are not a step-by-step process, but rather these functions occur simultaneously in order to operate an organization.
Answers
The four functions of management are : D. a step-by-step process that needs to be followed.
What is management?Management can be defined as the process of effectively managing the day to day operation of a business so as to achieve smoothy running .
The four managemet functions are esssentials orm important for any company or organization that want to succeed based on the fact that this function enables companies to operate smootly.
The four management functions are:
PlanningOrganizingLeadingControllingThis implies that managers needs to plan, organize, lead and control their daily business operation and this management functions should be follow step by step so as to acheive a desire result.
Planning is important for any business that want to succeed as lack of planning can have a negative effect on the growth of a company.
Therefore the correct option is D.
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A free enterprise system provides individuals the opportunity to make their own economic decisions, without restrictions from the government. It allows the supply and demand of consumers to determine the success or failure of an economic endeavor. As a result, some business owners have become successful, while others have not.
In an essay, you will choose an entrepreneur and argue whether the free enterprise system was necessary for that individual to make an impact on the business world.
Answers
The entrepreneur that is chosen for this argument is Steve Jobs. Steve Jobs was one of the co-founders of Apple, which is now a trillion-dollar company.
The free enterprise system was necessary for Steve Jobs to make an impact on the business world. Steve Jobs did not come from a wealthy background, but he had a passion for technology. The free enterprise system allowed him to start a business without any restrictions from the government.
He was able to create innovative products, such as the iPhone and iPad, and sell them to consumers. The supply and demand of consumers determined the success or failure of his business endeavors. Steve Jobs was able to create a successful company and become a billionaire because of the free enterprise system.
Without the free enterprise system, Steve Jobs may not have been able to start a successful business and make an impact on the business world.
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Companies at the fourth stage of developing their global business
Answers
Answer:
what's the question here?
in what context pf the 4th stage are you referring to
What is a retail Growth potential?
Answers
Answer:
decisions related to allocating available resources among different target markets and retail formats
Explanation:
Norton Company has accounts receivable of $40,000 in its general ledger at July 31: During August, the following transactions occurred. Aug. 1 Added 1% finance charges to $13,000 of credit card balances for not paying within the 30 day grace period. 15 Sold $21,000 of accounts receivable to Iron Factors Inc. who charge a 4% commission. 28 Collected $8,000 from Norton credit card customers which included $400 of finance charges previously billed.
Required:
a. Journalize the transactions.
b. Indicate the statement presentation of finance and service charges.
Answers
1.The journal entries to record the transactions of Norton Company during August are as follows:
Aug. 1 Debit Interest Receivable $130
Credit Interest Revenue $130
Aug. 15 Debit Accounts Receivable (Iron Factors Inc.) $20,160
Debit Sales Commission $840
Credit Sales Revenue $21,000
4% commission.
Aug. 28 Debit Cash $8,000
Credit Accounts Receivable (Norton credit card) $7,600
Credit Interest Receivable $400
2. The statement presentation of finance and service charges is as follows:
Income Statement:Interest revenue $130 (Credit)
Sales commission $840 (Debit)
Data and Calculations:Accounts receivable at July 31 = $40,000
Transactions:Aug. 1 1% finance charges to $13,000 = $130 ($13,000 x 1%)
Aug. 1 Interest Receivable $130 Interest Revenue (finance charges) $130
Aug. 15 Accounts Receivable (Iron Factors Inc.) $20,160 Sales Commission $840 Sales Revenue $21,000
4% commission.
Aug. 28 Cash $8,000 Accounts Receivable (Norton credit card) $7,600 Interest Receivable $400
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A promissory note can best be described as __________., a. an interest-bearing IOU, b. a guarantee of a line of credit, c. a commitment to lend money to someone, d. a government-backed bond
Answers
A promissory note can best be described as: a. an interest-bearing IOU.
What is promissory note?Promissory note can be defined as a written note that help to shows that a person who lend a money from another person promise to payback. The note contains a promise by the borrower to pay back the lender within a stipulated period of time.
A promissory note can tend to be described as IOU which full meaning is I OWE YOU which implies that a borrower is telling the lender that he/she owe the lender some certain amount of money which the borrower will have to payback.
A promissory note also contains the terms and conditions of the agreement and this terms and agreement includes the following :
The principal amountThe loan maturity dateThe interest etcTherefore we can conclude that the correct option is A.
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When a sale is made on account, what impact does a sales discount have on the amount of cash eventually received? It either increases or decreases the amount of cash received in unpredictable ways. It neither increases nor decreases the amount of cash received. It decreases the amount of cash received. It increases the amount of cash received.
Answers
When a sale is made on account, D. It decreases the amount of cash received.
What is sale?It should be noted that sale simply means the quantity of goods and services sold at a particular period of time.
In this case, when a sale is made on account, the impact that it will have on the amount of cash eventually received is that it decreases the amount of cash received.
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Katz (1955) identified three categories of skills that should be developed in order to improve administrative leadership. Which type of skills are characterized by the ability to work cooperatively with group members, being aware and sensitive to the needs of others, and building a trusting environment?
Answers
There are three essential skill sets for successful leaders, according to Robert Katz: interpersonal (or human) skills, conceptual skills, and technical skills.
How does the Katz Three Skill Approach work?When Robert Katz published his article titled "Skills of an Effective Administrator" in the Harvard Business Review in 1955, the skills theory of leadership became a well-known concept. Katz's personal observations of executives at work and field research in administration served as the foundation for the study. In the paper, he suggested that three fundamental personal skills are necessary for effective administration or leadership: human, conceptual, and technical He identified these three areas of expertise as the most essential skills that the executives shared and utilized frequently.
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tình hình kinh tế và triển vọng phát triển của việt nam
Answers
Answer:
English plzzz
Explanation:
How do you redeem a
lottery tickets
Answers
Explanation:
you can redeem a winning ticket from any type of lottery game to an authorized retailer when your prize is less than 600$
hope I helped
It can be a bit tricky to tell the difference between a national and international
business.
True
False
Answers
Answer:
False
Explanation:
Domestic business involves those economic transactions that take place within the geographical boundaries of a country. International business involves those economic transactions that take place outside the geographical boundaries of a country.
International business can help improve political relations among countries. Culture refers to the type of government of a country.
An investor in an oil and gas limited partnership program is subject to the economic consequences of all of the following EXCEPT:_________. A) depreciation on tangible assets. B) nonrecourse loans. C) recourse loans. D) operating losses.
Answers
Answer:
B) nonrecourse loans.
Explanation:
The answer is non recourse loans and this is the reason why. Such loans only hold for those in real estates. That is it is limited to investors in real estate. Such a loan is usually gotten by means of collateral which is usually in the form of real estate. The person who issues such a loan can seize the collateral in case of a default in payment.
Which is better, quantitative research or qualitative research?
Answers
Answer:
Quantitative research is more preferred over qualitative research because it is more scientific, objective, fast, focused and acceptable. However, qualitative research is used when the researcher has no idea what to expect. It is used to define the problem or develop and approach to the problem.
Explanation:
Identify an ethical challenge facing companies today. Then, describe a company managing that issue in a socially responsible way and a company managing the issue in an irresponsible way. What defines the difference between these two companies?
Answers
Ethical challenge is environmental sustainability. Responsible way Patagonia prioritizes eco-friendly practices. Irresponsible way XYZ Corp ignores regulations for profit. Difference is commitment to sustainability and ethical values vs. short-term gains.
Environmental sustainability is one of the ethical issues that businesses today must deal with. Embracing sustainability through the use of recycled materials, open supply chains, and the promotion of reduced consumption are ethical businesses like Patagonia. They place more importance on long term environmental effects than on immediate gains. In contrast, irresponsible businesses like XYZ Corporation flout laws, pollute and put profit before anything else. Their differing perspectives on impact and values explain the difference.
Responsible business practices are prioritized by ethical companies, benefiting people and the environment. Responsible organizations that are only interested in short-term profits disregard long-term effects, which shows a lack of commitment to ethics. Their commitment to sustainability, their behavior, and their understanding of broader social and environmental responsibilities beyond financial gains make a difference.
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Briefly describe the disadvantages of multiple points of contact for a user who has a question or problem.
Answers
Incomplete question. The options:
The user may not know whom to contact about a problem.The user may misdiagnose the problem and contact the wrong contact person.The contacts may not know the answer.The contacts may disagree about the solution to a problemAnswer:
The contacts may disagree about the solution to a problemExplanation:
Of course, there is a likelihood of disagreement between the contacts as they may have slightly to very broad different opinions about how to solve a particular problem.
For example, imagine a customer has a problem he believes can be solved, he decides to;
contact support team A via phone call, he's attended to and offered a solution, still unclear he againcontacts another support team (team B) via email, in this case, a different support staff attends to him.Finally, he likely discovers that the suggestions made by the contacts disagree (not in harmony) about the solution to a problem.