Ramirez Corporation purchased 30% of the outstanding common stock of Valencia Inc. for $240,000. During the year, Valencia reported net income of $75,000 and paid dividends of $45,000. What is the carrying value of Ramirez's investment in Valencia at the end of the year?
Q: What is GLA Corporation's return on Assets (rounded) for 2022?
A: ROA = Net Income / Average Total Assets Given Data:Net Income for 2022 = $480 millionTotal Assets at…
Q: Dynamic Production Services started the year with total assets of $130,000 and total liabilities of…
A: Step 1: Definition of Net IncomeNet income is the amount by which total revenues exceed total…
Q: Solve this Accounting problem
A: Explanation of Overhead Costs:Overhead costs refer to the indirect costs of manufacturing that…
Q: Management anticipates fixed costs of $65,000 and variable costs equal to 35% of sales. What will…
A: Explanation of Fixed Costs: Fixed costs are business expenses that remain constant regardless of…
Q: General accounting question with help
A: Step 1: Definition of Contribution Margin Per UnitThe contribution margin per unit is the amount…
Q: Need answer
A: Explanation of Direct Labor Rate Variance:Direct Labor Rate Variance measures the difference between…
Q: Calculate the depreciation for Year 1 using the units-of-production (activity-based) depreciation…
A: Step 1: Determine Depreciable Cost per TruckThe depreciable cost per truck is calculated…
Q: What is the adjusted book Balance?
A: Step 1: Definitions Concept of Bank Reconciliation:Bank Reconciliation is the process of comparing a…
Q: ABC Company has December unit sales of 12,000 units. Assuming a 5 percent growth, what is the…
A: **Projected Sales = Current Sales × (1 + Growth Rate)**Given:- Current Sales = 12,000 units- Growth…
Q: Tutor Need Your Help
A: Provided Data:Net income: $110,000Depreciation expense: $15,000Decrease in accounts receivable:…
Q: For Ikea Manufacturing, the predetermined overhead rate is 125% of direct labor cost. During the…
A: Explanation of Manufacturing Overhead: Manufacturing overhead includes all indirect costs associated…
Q: Solve this
A: Provided Data:Actual direct labor hours worked = 62,100 hoursBudgeted overhead = $3,295,000Budgeted…
Q: Overhead rate per direct labour hour
A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is used in job…
Q: Don't use ai given answer accounting
A: Step 1: Definition of Actual Manufacturing OverheadActual manufacturing overhead refers to the real…
Q: Given solution for General accounting question not use ai
A: Step 1: Define Variable CostingVariable costing is an accounting method in which only variable…
Q: The total ending WIP cost amounts
A: Explanation of Work-in-Process (WIP) Inventory:Work-in-process (WIP) inventory represents partially…
Q: What is the firm's debt equity ratio of this financial accounting question?
A: Step 1: Definition of Debt-Equity RatioThe debt-equity ratio measures a company's financial leverage…
Q: General accounting
A: To estimate the P/E (Price-to-Earnings) multiple with respect to year 6 earnings, follow these…
Q: I need the correct answer to this general accounting problem using the standard accounting approach.
A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) measures how effectively a…
Q: Financial accounting
A: Step 1: Define Accrual AccountingAccrual Accounting records transactions when they occur, regardless…
Q: Provide answer
A: Provided Data:Cost of Goods Sold: $9,000Interest Expense: $1,200Selling and Administrative Expense:…
Q: Compute the manufacturing overhead rate for the year.
A: Step 1: Definitions Concept of Manufacturing Overhead:Manufacturing Overhead includes all indirect…
Q: Please help me solve this general accounting problem with the correct financial process.
A: To calculate Precision Manufacturing's variable maintenance cost per production hour using the…
Q: explain properly all the answer for General accounting question Please given fast
A: Step 1: Define LiabilitiesIn accounting, liabilities represent the financial obligations or debts…
Q: TopLine Products has a budget with sales of 12,500 units and $5,200,000. Variable costs are budgeted…
A: To calculate the budgeted manufacturing cost per unit, you need to consider both the variable costs…
Q: I am searching for the accurate solution to this general accounting problem with the right approach.
A: To compute the production cost per unit under absorption costing, we need to include all…
Q: Saint Hill Inc. recorded a loss of $9,800 when it sold a van that originally cost $87,000 for…
A: Provided Data:Original cost of van = $87,000Sale price of van = $14,300Recorded loss on sale =…
Q: Hey expert please provide step by step solution for financial accounting
A: Step 1: Definition of Cash FlowCash Flow refers to the movement of cash into and out of a business,…
Q: A project will increase sales by $250,000 and cash expenses by $60,000. The project will cost…
A: Explanation of Depreciation:Depreciation is the accounting method used to allocate the cost of a…
Q: A company sold a delivery truck for $18,000 cash
A: Concept of Original Cost:Original cost refers to the purchase price or historical cost of an asset…
Q: Please provide the solution to this financial accounting question using proper accounting…
A: Step 1: Definition of Profit Margin RateThe profit margin rate is a financial ratio that shows the…
Q: Provide Solutions of this Question
A:
Q: Please provide the correct answer to this general accounting problem using valid calculations.
A: To estimate the total costs for producing 29,000 units using the high-low method, we first need to…
Q: what is the total market value of the componys equity ? accounting question
A: The total market value of a company's equity can be calculated using the market-to-book ratio…
Q: I want the correct answer with accounting question
A: Step 1: Definition of Warranty ExpenseWarranty expense refers to the estimated cost a company…
Q: Solve this qn plz
A: Adjusted cash bank balance = Cash balance per bank statement + Deposit in transit - Outstanding…
Q: A company began the year with total liabilities of $159,000 and stockholders' equity of $42,000.…
A: Provided Data:Beginning Liabilities = $159,000Beginning Stockholders' Equity = $42,000Net Income…
Q: Answer this financial accounting question
A: Step 1: Introduction to CVP AnalysisCVP analysis, or cost-volume-profit analysis, is a management…
Q: General Account
A: Step 1: Definition of Operating LeverageOperating leverage refers to the degree to which a company's…
Q: On January 1, 2020, Acme Corporation leased equipment to Zenith Company. The lease term is 10 years.…
A: Step 1: Definition of Interest Revenue in a Sales-Type LeaseInterest revenue in a sales-type lease…
Q: General Accounting
A: Step 1: Definition of Mixed CostsMixed costs contain both a fixed component (which does not change…
Q: What is the required rate of return on these financial accounting question?
A: Step 1: Definition of Required Rate of ReturnThe required rate of return is the minimum annual…
Q: Solve this Accounting problem
A: Step 1: Definition of Degree of Operating Leverage (DOL)Degree of Operating Leverage (DOL) measures…
Q: On January 1, 2021, Nohara Inc, had cash and share capital of Yen 60,000,000. At that date, the…
A: Provided Data:Initial cash & share capital (Jan 1, 2021): ¥60,000,000Equity securities purchased…
Q: I am trying to find the accurate solution to this general accounting problem with appropriate…
A: Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…
Q: Ridley Energy Inc. is owned by a group of private investors. The firm earned $4,200,000 after taxes…
A: To determine how much common stock Ridley Energy Inc. could repurchase, we need to analyze the…
Q: Please provide problem with accounting question
A: Step 1: Definition of Book Value of LiabilityThe book value of liability is the value at which a…
Q: Please provide the answer to this financial accounting question using the right approach.
A: Step 1: Definition of Dollar Return on Investment The dollar return on investment is the total…
Q: I need help with this general accounting question using the proper accounting approach.
A: Step 1: Definition of Payroll ExpensePayroll expense refers to the cost incurred by a business for…
Q: Calculate the variable costing unit product cost?
A: Step 1: Definition of Variable Costing Unit Product CostVariable costing unit product cost includes…
None
Step by step
Solved in 2 steps
- Kross Company purchases an equity investment in Penno Company at a purchase price of $2.5 million, representing 40% of the book value of Penno. During the current year, Penno reports net income of $300,000 and pays cash dividends of $100,000. At the end of the year, the fair value of Kross’s invest- ment is $2.65 million. What amount of income does Kross report relating to this investment in Penno for the year? Explain.Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $95,000 and declared dividends of $35,000 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method? would it increase or decreaseDuring 2021 Blossom Company purchased 8700 shares of Nash Inc. for $17 per share. During the year Blossom Company sold 1850 shares of Nash, Inc. for $22 per share. At December 31, 2021 the market price of Nash, Inc.’s stock was $15 per share. What is the total amount of gain/(loss) that Blossom Company will report in its income statement for the year ended December 31, 2021 related to its investment in Nash, Inc. stock? $-8150 $-17400 $-4450 $9250
- Can you answer this accounting question?Peter Inc. purchases 30% of Sam Ltd for $50,000 with significant influence. At year-end, Peter Inc. reports a net income of $100,000 and a dividend of $50,000 to its shareholders. Calculate the ending balance in Peter's investment account at year-end.Ridgeway Enterprises owns stock in Pinnacle Inc. and has an operating income of $180,000 and operating expenses of $240,000 for the year. Pinnacle Inc. pays Ridgeway a dividend of $120,000. What amount of dividends received deduction may Ridgeway claim if it owns 30% of Pinnacle’s stock?
- Riverbed Corporation purchased 400 shares of Sherman Inc. common stock for $12,900 (Riverbed does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.00 per share. Prepare Riverbed journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (List all debit entries before credit entries, Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $45 million. At the time of purchase, the carrying value of Sky Tech's net assets was $75 million. The fair value of Sky Tech's depreciable assets was $15 million in excess of their book value. For this year, Sky Tech reported a net income of $75 million and declared and paid $15 million in dividends.The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is:At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $51 million. At the time of purchase, the carrying value of Sky Tech's net assets was $80 million. The fair value of Sky Tech's depreciable assets was $20 million in excess of their book value. For this year, Sky Tech reported a net income of $80 million and declared and paid $20 million in dividends. The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is: Multiple Choice O $6.0 million. $20 million. $30 million. None of these answer choices are correct.
- On May 20, Montero Co. paid $150,000 to acquire 30 shares (4%) of ORD Corp. as a long-term investment. On August 5, Montero sold one-tenth of the ORD shares for $18,000. 1. Prepare entries to record both (a) the acquisition and (b) the sale of these shares. 2. Should this stock investment be reported at fair value or at cost on the balance sheet?BaghibenConcord Corporation purchased 360 shares of Sherman Inc. common stock for $11,900 (Concord does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.50 per share. Prepare Concord' journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) (c)