On January 2, 2016, Well Co. purchased 10% of Rea Inc.’s outstanding common shares for $400,000. Well is the largest single shareholder in Rea, and Well’s officers are a majority on Rea’s board of directors. Rea reported net income of $500,000 for 2016, and paid dividends of $150,000. In its December 31, 2016, balance sheet, what amount should Well report as investment in Rea? a. $435,000 b. $450,000 c. $400,000 d. $385,000

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A: Equity method is an accounting technique of recording the financial transactions related to…

Q: On December 31, 2016, Akron, Inc. purchased 5 Percent of Zip’s Company's common shares on the open…

A: Given Information:

Q: On December 31, 2015, Raja Corporation's balance sheet reported the following: The following…

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A: Formula: Total dividends = Dividend per share x Total number of shares outstanding.

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Q: Daron Co. purchased 20.000 shares of Herkul Co on 2 April 2018. Share price of Herkul Co. was 6 $.…

A: Journal:   It is the first step of recording financial transactions. It is used to prepare the…

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A: Situation 1: Date Account Titles and Explanations Debit Credit March 18, 2017…

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A:

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A: a.

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A:

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A:

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A: Particulars  Amount DR.  Amount CR. Inventory 290000   Other Current assets 362000…

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A: Formulas for the above table:

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A:

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A:

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.