On January 1, 2012, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts on January 1, 2012: (Chart) Kaltop earned net income for 2012 of $126,000 and paid dividends of $48,000 during the year. In Cale's accounting records, what amount would appear on December 31, 2012 for equity in subsidiary earnings

Answers

Answer 1

Answer:

The correct option is D) $127,000.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

On January 1, 2012, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts on January 1, 2012:

                                          Book  Value        Fair Value

Current assets                      $120,000          $120,000

Land                                           72,000           192,000

Building (20yr life)                  240,000           268,000

Equipment (10yr life)               540,000            516,000

Current Liabilities                      24,000             24,000

Long-term Liabilities                120,000           120,000

Common Stock                       228,000

Additional Paid-in Capital       384,000

Retained Earnings                   216,000

Kaltop earned net income for 2012 of $126,000 and paid dividends of $48,000 during the year.

In Cale's accounting records, what amount would appear on December 31, 2012 for equity in subsidiary earnings?

A) $ 77,000.

B) $ 79,000.

C) $125,000.

D) $127,000.

E) $ 81,800.

The explanation of the answer is now provided as follows:

Total amortization of allocations for 2012 = ((Building fair value – Building book value) / 20 year) + ((Equipment fair value - Equipment book value) / 10 years) = (($268,000 - $240,000) / 20) + (($516,000 - $540,000) / 10) = -$1,000

Amount for equity in subsidiary earnings on December 31, 2012 = Kaltop earned net income for 2012 - Total amortization of allocations for 2012 = $126,000 - (-$1,000) = $126,000 + $1,000 = $127,000

The amount that would appear on December 31, 2012 for equity in subsidiary earnings is $127,000. Therefore, the correct option is D) $127,000.


Related Questions

Both corrective taxes and tradable pollution permits reduce the cost of environmental protection and thus should increase the public's demand for a clean environment. b. Both corrective taxes and tradable pollution permits provide market-based incentives for firms to reduce pollution. c. Tradable pollution permits have an advantage over corrective taxes if the government is uncertain as to the optimal size of the tax necessary to reduce pollution to a specific level. d. Corrective taxes set the maximum quantity of pollution, whereas tradable pollution permits fix the price of pollution.

Answers

Answer:

d. Corrective taxes set the maximum quantity of pollution, whereas tradable pollution permits fix the price of pollution.

Explanation:

The government applied the alternatives for the policy in order to control the pollution problem

here following two vital policy alternatives i.e.

1. Corrective taxes

2. Permits of Tradable pollution

The corrective taxes impose the per unit tax with regard to the pollution i.e. emitted. Also it fixed the pollution price  

Here there is a permit of the tradable pollution that could set the pollution limit i.e. maximum. On the other hand, the firm could emit the pollution till the quantity mentioned by the permit of the tradable permit  

So, the option d should be considered

Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,100 units) $ 248,500 $ 35.00 Variable expenses 134,900 19.00 Contribution margin 113,600 $ 16.00 Fixed expenses 55,800 Net operating income $ 57,800 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 6,100 units?

Answers

Answer:

1. Particulars                                             Amount

Sales total (7,150 * $35)                          $250,250

Less: Variable expenses (7,150 * $19)   $135,850

Contribution margin                                $114,400

Less: Fixed expenses                             $55,800

Net operating income                            $ 58,600

2.  Particulars                                            Amount

Sales total (7,050 * $35)                          $246,750

Less: Variable expenses (7,050 * $19)   $133,950

Contribution margin                                 $112,800

Less: Fixed expenses                              $55,800

Net operating income                             $ 57,000

3. Particulars                                             Amount

Sales total (6,100* $35)                           $213,500

Less: Variable expenses (6,100 * $19)    $115,900

Contribution margin                                 $97,600

Less: Fixed expenses                              $55,800

Net operating income                             $ 41,800

On the issuance date, Saucedog Inc. had a Bonds Payable account with a balance of $55,000,000 and Premium on Bonds Payable account with a balance of $5,000,000. How much cash did Saucedog Inc. collect when these bonds were issued

Answers

Answer:

the cash collected in the case when the bonds are issued is $60,000,000

Explanation:

The computation of the cash collected in the case when the bonds are issued is shown below:

Bonds payable [Face value] $55,000,000

Add: Premium on Bonds payable [Unamoritzed] $5,000,000

Issue price of the bonds $60,000,000

Hence, the cash collected in the case when the bonds are issued is $60,000,000

For each example listed, decide if the good is a normal good or an inferior good. Make sure you answer from the perspective of the individual or individuals doing the buying or consuming. You are currently in a labeling module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop. Billy's mom increases his weekly allowance by $ 5 . As a result, Billy increases the number of apps he downloads on his smartphone. Smartphone apps are Susan gets a 15 percent performance bonus at work. She can finally stop eating so many frozen pizzas and eat something more tasty. Frozen pizzas are Mike is an appliance salesman. Refrigerator sales in his store have fallen and so has his commission. Mike decides to switch from name brand cereal to generic cereal. Generic cereal is Hair stylist Molly loses a few of her clients. Molly cuts back on the number of smoothies she buys during the week. Smoothies are:______.

Answers

Answer and Explanation:

In the case when the income increased so the demand also increased so the goods are classified as the normal goods. Therefore the apps are normal goods

In the case when the income increased but the demand declines so it is to be considered as the inferior goods so frozen pizzas are inferior goods

In the case when there is the decline in the income due to this the income rises so the goods are inferior goods. So, the generic cereal is an inferior goods

In the case when the income declines so the demand also declines this meand the goods are normal goods. So, smoothies are normal goods  

Suppose a consumer with an income of $100 is faced with Px = 1 and Py = 1/2. What is the market rate of substitution between good X (horizontal axis) and good Y (vertical axis)? A. 0.50 B. -1.0 C. -2.0 D. -4.0

Answers

Answer:

The correct option is C. -2.0.

Explanation:

The Market Rate of Substitution can be described as the rate at which one good can be exchanged for another at current market prices.

Given:

Px = 1

Py = 1/2, or 0.5

The MRSxy which is market rate of substitution between good X (horizontal axis) and good Y (vertical axis) can be calculated as follows:

MRSxy = - Px / Py = - 1/ 0.5 = -2,0

Therefore, the correct option is C. -2.0.

Dmitri loves watching Downton Abbey on his local public TV station, but he never sends any money to support the station during its fundraising drives. Economists would call Dmitri a . True or False: The government cannot solve the problem caused by people like Dmitri. True False True or False: The private market can solve this problem by broadcasting Downton Abbey on cable TV, since then the good would be excludable and thus no longer a public good. True False

Answers

B. The private marker can solve this problem by broadcasting Downton Abbey on cable TV, since then the good would excludable and thus no longer a public good.

This would solve the money problem, by making it so that people have to pay to watch, which will generate more income.

Your company purchases $50,000 of inventory from a wholesaler who allows you 45 days to pay. In addition, the wholesaler offers a 3% discount if payment is made within 12 days. These payment terms would be expressed as: A. 0.03/12, n/45. B. n/45, 0.03/12. C. 3/12, n/45. D. n/45, 3/12.

Answers

Answer:

C. 3/12, n/45

Explanation:

These payment terms would be expressed as : 3/12, n/45.

This is because :

3/12 means 3 % discount is granted if payment is made within 12 days.n/45 means supplier allows customer to pay within 45 days in total.

Nesmith Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 15 years to maturity, and an 8% YTM. What is the bond's price? Round your answer to the nearest cent.

Answers

Answer:

$913.54

Explanation:

Calculation to determine the bond's price

Using Financial calculator to solve for PV( PRESENT VALUE)

N = 2 × 15 = 30

I/YR = 8%/2 = 4%

PMT = 1,000*7%*1/2=35

FV = 1000

PV=?

Hence,

PV = $913.54

Therefore the bond's price is $913.54

With an aggregate supply function that is continually positively sloped (LRAS), a reduction in aggregate demand leads to: Group of answer choices Falling prices cost-push interest rate Perpetual growth Rising prices Falling Employment

Answers

Answer: Falling prices

Explanation:

When Aggregate demand reduces, the Aggregate demand curve will have to shift leftward to depict this and in doing so, it would intersect with the Long Run Aggregate Supply curve at a lower price level thereby leading to a fall in prices.

Aggregate demand reducing means that there is less money being spent in the economy and should this be the case, the economy is going to contract and unless the Aggregate demand was above potential GDP then this is not ideal.

$
$
$
2,400.00
1,560.00
4,800.00
15,672.00
50,001.00
las en
50,000.00
50,001.00
(1.00)
$

Answers

Answer:

english pls

Explanation:

Which career pathways require arm and hand steadiness as a qualification?

Biotechnology, Diagnostics, and Health Informatics

Biotechnology, Diagnostics, and Therapeutics
Therapeutics, Support Services, and Diagnostics
Therapeutics, Health Informatics, and Support Services

Answers

Answer:

C.

Explanation:

Therapeutics, Support Services, and Diagnostics

Answer:

C. Therapeutics, Support Services, and Diagnostics.

correct on edge unit test

This is a question I have on my Unit Test as I am typing this.

Explanation:

On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $36,000. The cab has an expected salvage value of $2,000. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 45,000 miles the first year and 48,000 the second year. What would be the depreciation expense reported on the Year 2 income statement and the book value of the taxi, respectively, at the end of Year 2?
a. $8,640 and $19,260
b. $8,640 and $17,260
c. $8,160 and $20,190
d. $8,160 and $18,190

Answers

Answer:

C

Explanation:

Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)

year 2 = (48,000 / 200,000) x (36,000 - 2000) = 8160

book value = cost of asset - accumulated depreciation

accumulated depreciation = year 1 + year 2's depreciation

year 1 =  (45,000 / 200,000) x (36,000 - 2000) =

- 200,000 - (7650 + 8160) =

A buyer uses a periodic inventory system, and it purchases $4,000 of merchandise on credit terms of 2/10, n/30 on December 5. On December 15, it pays the invoice in full. Prepare the buyer's necessary journal entry for payment by selecting the account names from the drop-down menus and entering dollar amounts in the Debit and Credit columns.

Answers

Answer:

Explanation:

Purchase discount = $4000 * 2% = $80

Date       Accounts title                  Debit    Credit

Dec-15    Accounts Payable         $4,000

                    Purchase Discounts                $80

                    Cash                                         $3,920

               (To record payment within discount term of 10 days)

Spotify just paid a cash dividend of $1 per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady 6 percent per year, what is the current value of the stock

Answers

Answer:

$10.60

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

1(1.06) / 0.16 - 0.06

1.06/0.10 = 10.60

On December 31, journalize the write-offs for 2016 under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded $5,250,000 of credit sales during 2016. Based on past history and industry averages, ¾% of credit sales are expected to be uncollectible. Refer to the Chart of Accounts for exact wording of account titles.
Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31, 2016:
Customer Amount
Shawn Brooke $4,650
Eve Denton 5,180
Art Malloy 11,050
Cassie Yost 9,120
Total $30,000

Answers

Answer:

Casebolt Company

Journal Entries:

Dec. 31, 2016

Debit Allowance for Uncollectible Accounts $30,000

Credit Accounts Receivable $30,000

To write-off uncollectible accounts.

Dec. 31, 2016

Debit Bad Debts Expenses $69,375

Credit Allowance for Uncollectible Accounts $69,375

To record bad debts for the year and bring the Allowance for Uncollectibles to a credit balance of $39,375.

Explanation:

a) Data and Calculations:

Credit sales for 2016 = $5,250,000

Uncollectible allowance based on past history and industry = 3/4% = $39,375 ($5,250,000 * 3/4%)

Actual accounts written off as uncollectible = $30,000

Customer Amount

Shawn Brooke   $4,650

Eve Denton           5,180

Art Malloy            11,050

Cassie Yost          9,120

Total                $30,000

Analysis:

Dec. 31, 2016 Allowance for Uncollectible Accounts $30,000 Accounts Receivable $30,000

Dec. 31, 2016 Bad Debts Expenses $69,375 Allowance for Uncollectible Accounts $69,375

Your goal is to have $10,000 in your bank account by the end of 15 years. If the interest rate remains constant at 3% and you want to make annual identical deposits, how much will you need to deposit in your account at the end of each year to reach your goal? (Note: Round your answer for PMT to two decimal places.)

Answers

Answer:

the pmt is $537.67

Explanation:

The computation of the PMT amount is given below;

Given that

FV = $10,000

PV = $0

NPER = 15 years

RATE = 3%

The formula is shown below:

= PMT(RATE, NPER,PV,FV,TYPE)

AFter applying the above formula, the pmt is $537.67

The same should be considered and relevant

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the bottleneck time

Answers

Answer:

9

Explanation:

Given that

There is five stations who have the process time of 5,9,4,9 and 8

We need to find out the bottleneck time

so, as we know that the bottleneck is the duration of the activity who have longer time

So as per the given situation the 9 has the longest duration activity time

So, the same is to be considered

Tin Roof's net cash flows for the next three years are projected at $72,000, $78,000, and $84,000, respectively. After that, the cash flows are expected to increase by 3.2 percent annually. The aftertax cost of debt is 6.2 percent and the cost of equity is 11.4 percent. What is the value of the firm if it is financed with 40 percent debt and 60 percent equity

Answers

Answer: $1282620.4

Explanation:

First, we'll calculate the weighted average cost of capital which will be:

= (Weight of debt × After cost of debt) + (Weight of equity × Cost of equity)

= (40% × 6.2%) + (60% × 11.4%)

= (0.4 × 0.062) + (0.6 × 0.114)

= 0.0248 + 0.0684

= 2.48% + 6.84%

= 9.32%

The present value calculated is $195424.56 (Check attachment)

Then, the terminal value for cash flow will be $1084195.40 (Check attachment)

Then, the value of the firm will be:

= Present value of cash flow + Terminal value for cash flow

= $195424.56 + $1084195.40

= $1282620.4

Therefore, the value of the firm is $1282620.40.

cách huy động vốn của công ty bảo hiểm

Answers

How to raise capital from an insurance company?

The current stock price of Alcoco is $40, and the stock does not pay dividends. The instantaneous risk-free rate of return is 7%. The instantaneous standard deviation of Alcoco's stock is 25%. You want to purchase a put option on this stock with an exercise price of $45 and an expiration date 30 days from now. According to the Black-Scholes OPM, you should hold __________ shares of stock per 100 put options to hedge your risk. Assume 365 days in a year
a) 59
b) 99
c) 55
d) 94

Answers

The answer would be 55

You are considering purchasing a piece of industrial equipment that costs 30000. You decide to make a down payment in the amount of 5000 and to borrow the remainder from a local bnak at an interest rate of 9% compounded monthly, which is to be paid for 36 monthly installments. The amount of the monthly payment is nearest to:_________

a. $954
b. $833
c. S795
d. $694

Answers

Answer:

b

Explanation:

Assume that Tree Co. has the ability to discontinue both product lines and rent the factory space previously used for the production of Leaves and Bark. The factory space for Leaves can be rented out for $25,000 a year, and the factory space for Bark can be rented for $27,000 a year. Which product lines should Tree Co. discontinue and rent out instead?

Answers

Answer:

Both Leaves and Bark should be discontinued and rented out

Explanation:

Calculation to determine whether Both Leaves and Bark should be discontinued and rented out

LEAVES BARK

Sales eliminated $(30,000)$(50,000)

Variable costs eliminated $10,000 $25,000

Net loss from discontinuation($20,000)($25,000)

($-30,000+$10,000=-$20,000)

(-$50,000+$25,000=-$25,000)

Rental income gained $25,000 $27,000

Increase in operating income $5,000 $2,000

($25,000-$20,000=$5,000)

($27,000-$25,000=$2,000)

Therefore based on the above calculation both Leaves and Bark SHOULD BE DISCONTINUED reason been that the NET LOSS for each is LESSER than the annual rental income.

Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 5 bars and the price is Rs.600 per bar. In year 2, the quantity produced is 6 bars and the price is Rs.750 per bar. In year 3, the quantity produced is 7 bars and the price is Rs.825 per bar. Year 1 is the base year. What is nominal GDP for year 1? What is real GDP for year 2? What is real GDP for year 3? What is the GDP deflator for year 2? What is the GDP deflator for year 3? What is the percentage growth rate of real GDP from year 2 to year 3? (Please avoid typing % sign)

Answers

Answer:

An apple, potato, and onion all taste the same if you eat them with your nose plugged

Explanation:

Value stream mapping (VSM):_____.
a. is typically done once an organization has converted to a lean system.
b. facilitates identifying sources and causes of waste.
c. has the potential to increase the carbon footprint.
d. is applied only in push production systems.

Answers

Answer:

b. facilitates identifying sources and causes of waste

Explanation:

Value-stream mapping can be regarded as material and information flow mapping, it can be explained as

lean-management method used in

analyzing of the current state as well as designing of future state as regards

series of events that is involved in taking a product/service from the starting of the particular process until the product/service gets to the customer. It should be noted that Value stream mapping (VSM) facilitates identifying sources and causes of waste

Scenario: Roberto Baldwin As the owner and manager of Fantastic Toys, Roberto Baldwin is fascinated by all the changes occurring and transforming the workplace. Roberto is concerned about the important OB trends that he can understand and take advantage of in developing and positioning his company in the marketplace. If Roberto wants to study deep-level diversity in his organization, he should

Answers

Answer: increases its connectivity with people and organizations in other parts of the world.

Explanation:

You can check the options online on the site.

Deep-level diversity simply refers to the traits that are non-observable which such as norms, attitudes, beliefs, and values.

Since Roberto wants to study deep-level diversity in his organization, therefore, he should increases its connectivity with people and organizations in other parts of the world. This will help him in learning about the norms and values of other people.

Assume the following sales data for a company: 2013 $945,000 2012 877,500 2011 650,000 If 2011 is the base year, what is the percentage increase in sales from 2011 to 2012? Group of answer choices 24% 35% 76% 135%

Answers

Answer:

35%

Explanation:

percentage increase in sales from 2011 to 2012 = (sales in 2012 / sales in 2011) - 1

(877,500 / 650,000) - 1 = 0.35 = 35%

Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

Answers

Answer and Explanation:

The computation is shown below:

a. The amount that should be paid is

= $4,500 - $1,200 - ($4,500 - $1,200) × 2%) + $140

= $4,500 - $1,200 - $66 + $140

= $3,374

And,

b.  The amount that should be paid is

= $7,650 - $450 - ($7,650 - $450) × 1%

= $7,650 - $450 - $72

= $7,128

In this way the amount to be paid in full could be determined

To meet projected annual sales, Bluegill Manufacturers, Inc. needs to produce 75,000 machines for the year. The estimated January 1 inventory is 7,000 units, and the desired December 31 inventory is 12,000 units. What are projected sales units for the year?

Answers

Answer:

70,000

Explanation:

Calculation to determine What are projected sales units for the year

Using this formula

Projected sales units=Production-during the year+Estimated beginning inventory-Desired ending inventory

Let Plug in the formula

Projected sales units=75,000+7000-12000

Projected sales units=70,000

Therefore the projected sales units for the year will be 70,000

Armstrong Security produces a variety of commercial burglar alarms. Their least expensive model has a demand of 400 units per day, the current lead time for this model is 2 days. They use containers that hold 20 alarms and use 44 Kanbans. What is their current safety stock policy (in percentage)?

Answers

Answer:

10%

Explanation:

Demand (D) = 400 per day, Lead time (L) = 2 days, Container capacity (C) = 20, Kanban (K) = 44. Let X represent safety factor

K = D * LT * (1+X) / C

44 = 400 * 2 * (1+X) / 20

880 = 400 * 2 * (1+X)

1 + X = 880 / 800

1 + X = 1.1

X = 1.1 - 1

X = 0.1

X = 10%

So therefore, their current safety stock policy is 10%

discuss how business risks are both inevitable and unavoidable​

Answers

Answer:

Risk is inevitable in everything we do. ... There may be some unlikely but high impact risks, for example, the risk that the solution could cause the destruction of the organisation (see the case studies below). The good Project Manager will constantly assess the risks and take action as needed.

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