On July 1, 2016, Killearn Company acquired 110,000 of the outstanding shares of Shaun Company for $14 per share. This acquisition gave Killearn a 25 percent ownership of Shaun and allowed Killearn to significantly influence the investee's decisions. As of July 1, 2016, the investee had assets with a book value of $5 million and liabilities of $620,000. At the time, Shaun held equipment appraised at $308,000 above book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life on its books that was undervalued by $1,208,000. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using the straight-line method. Killearn applies the equity method for its investment in Shaun. Shaun's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Shaun's income, earned evenly throughout each year, was $591,000 in 2016, $634,400 in 2017, and $682,400 in 2018. In addition, Killearn sold inventory costing $98,400 to Shaun for $164,000 during 2017. Shaun resold $117,000 of this inventory during 2017 and the remaining $47,000 during 2018. Determine the equity income to be recognized by Killearn during each of these years. Compute Killearn's investment in Shaun Company's balance as of December 31, 2018.

Answers

Answer 1

Answer:

A. 2017 $61,400

2018 $49,400

B. $1,650,800

Explanation:

A. Calculation to Determine the equity income to be recognized by Killearn during each of these years.

2017 EQUITY INCOME

Equity Income =(25%*$634,400)-($ 1 per share April 1 Cash dividend+$ 1 per share October 1 Cash dividend*$110,000)

Equity Income =$158,600-($2per share*110,000)

Equity Income =$158,600-$220,000

Equity Income =$61,400

2018 EQUITY INCOME

Equity Income =(25%*$682,400)-($ 1 per share April 1 cash dividend+$ 1 per share October 1 cash dividend*$110,000)

Equity Income =$170,600-($2per share*110,000)

Equity Income =$170,600-$220,000

Equity Income =$49,400

Therefore the equity income to be recognized by Killearn during 2017 is $61,400 and 2018 is $49,400 .

b. Computation for Killearn's investment in Shaun Company's balance as of December 31, 2018

Original Investment at Cost $1,540,000

( 110,000*14per share)

Add 2017 Profit shared (Net of Dividend) $61,400

Add 2018 Profit shares (Net of Dividend) $ 49,400

2018 Investment Value $1,650,800

($1,540,000+$61,400+$ 49,400)

Therefore Killearn's investment in Shaun Company's balance as of December 31, 2018 will be $1,650,800


Related Questions

If there are so many risks to investing in the stock market, why do so many people do it?

Answers

There's an obvious answer... high risk; ergo high return.

The following citation is for a page on a Web site. Identify the error in the citation.

Answers

What error? Where’s the picture? What’s the problem? Going Crazy Here

Great Pumpkin Inc., wants to purchase a vending machine for their common room and chooses dimensions of cost, reliability, and flexibility as critical. They evaluate three different vending machine companies and rate their performance on each criterion on a scale from 1 (poor) to 5 (excellent). Which company should Great Pumpkin choose

Answers

Question Completion:

Dimension    Importance   Spike  Olaf  Andy

Cost                 4                  1           5       3

Reliability         2                 5           2       3

Cost                 3                 3           3       4

Answer:

Great Pumpkin Inc.

Great Pumpkin should choose Olaf Manufacturing with the highest weighted score of 33.

Explanation:

a) Data and Calculations:

Dimension    Importance   Spike      Olaf             Andy

Cost                 4                 4 (1*4)     20 (5*4)      12 (3*4)

Reliability         2                10 (5*2)     4 (2*2)        6 (3*2)

Cost                 3                 9 (3*3)      9 (3*3)       12 (4*3)

Total weighted scores    23             33               30

b) Based on the total weighted scores, Olaf Manufacturing performed best among the three companies.  It should be chosen.  To obtain the weighted scores for each company, the scale it obtains under each dimension is multiplied by the importance of the dimension.  This is done for each dimension and each company before the total weighted scores are obtained and the company with the highest score is adjudged the winner.

Based on your learning of value chain, business strategy and product / market combinations do you share Dawar’s arguments that marketing is indeed becoming strategy? Why?

Answers

Answer: Marketing is becoming more strategic, firms are in a fierce competition to prove themselves to their clients and customers that they are the best at what they do.

Explanation:

I share in Dawar's argument that marketing is becoming more strategic, firms are in a fierce competition to prove themselves to their clients and customers that they are the best at what they do. business strategies are now increasingly inclined towards customer centric activities. Businesses are now focused not only on increasing market share but also on retaining customers as the competition in the market are increasing day by day.

What is bootstrapping technique 1 buying as much as u can 2 leasing as much as u can

Answers

Answer:

2. Lease as much as you can.

Explanation:

The term 'bootstrapping' can be defined as a process used by entrepreneurs to bringing in use their own assets as the capital resource. These resources can include personal savings, personal property area, etc. An enterprenuer can use these resources to ensure positive cash flow.

The most common way of bootstrapping is to lease your resources. One can lease his/her resources as much as one can under bootstrapping technique.

Therefore, option 2 is correct.

Using the information below for Laurels Company; determine the manufacturing costs added during the current year:

Direct materials used $5,000
Direct labor 7,000
Total factory overhead 5,100
Beginning work in process 3,000
Ending work in process 4,000

a. $12,000.
b. $16,100.
c. $17,100.
d. $18,100.
e. $13,600.

Answers

Answer:

C. $17,100

Explanation:

The manufacturing cost for the year is computed as;

Manufacturing cost = (Direct materials + Direct labor + Total factory overheads) + Beginning work in process - Ending work in process

Direct materials

$5,000

Direct labor

$7,000

Total factory overheads.

$5,100

Direct manufacturing costs

$17,100

Add beginning work in process

$3,000

Less ending work in process

($4,000)

Total manufacturing costs

$16,100

Which statement is true about the purpose of a Work-In-Process constraint?

a. It identifies possible constraints for Solution completion.
b. It helps analyze, approve, and track Portfolio Epics and Enablers
c. It captures where all new "big" ideas come from
d. It encourages collaboration and enables flow

Answers

Answer:

a. It identifies possible constraints for Solution completion.

Explanation:

Work in process limits or constraints represent the fixed constraints that implemented on kanban boards that helps in removing the wastage from the processes

In the given statement, the first statement is true as it identifies the possible constraints in order to complete the solution

Therefore the same is to be relevant

Hence, all the other options are wrong

Damon convinced his aunt to lend him $6,900 to purchase a plasma digital TV. She has agreed to charge only 12 percent simple interest, and he has agreed to repay the loan at the end of one year. How much interest will he pay for the year

Answers

Answer:

444

Explanation:

Simple Interest for a year can be calculated using

I = PRT/100

P= Principle amount

R= percent simple interest

T= time

(3700)(12)(1)/100 = 444

PLEASE HURRY

Using the chart below for reference, how would you describe the relationship between the amount of education you
receive and the amount of money you make?
Average Annual Earnings for College Graduates
and Non-Graduates
Professional Degree
$109,600
Doctoral Degree
$89,400
Master's Degree
$62,300
Bachelor's Degree
$52,200
Associate's Degree $38,200
Some College $36,800
High School Diploma $30,400
Some High School
$23.400

Answers

Answer:

I think it would be master's degree

sorry if I am wrong I really kind of don't know the real answer

the scott company had the following activities during 2019. during the year, work-in-process increased by $2,500 and finished goods decreased by $6,000. during the year, work-in-process increased by $2,500 calculate the amount of direct labor cost for the year

Answers

Answer:

$5,000

Explanation:

The amount of direct labor cost is calculated as;

= Increase in work in process during the year + Increase in work in process during the year

Given that;

Increase in work in process during the year = $2,500

Further increase in work in process during the year = $2,500

Direct labor cost = $2,500 + $2,500

Direct labor cost $5,000

aron Company has a process costing system. All materials are introduced when conversion costs reach 50 percent. The following information is available for physical units during March
Work in process, March 1 (60% complete as to conversion costs) 150,000Units started in March 600,000Units transferred to Finishing Department in March 630,000Work in process, March 31 (40% complete as to conversion costs) 120,000Compute the equivalent units for materials costs and for conversion costs using FIFO method

Answers

Answer:

Equivalent units of production for materials

Opening work in process was complete with respect to materials so not EUP there.

Closing work in process was complete as well.

EUP for materials is:

= Units transferred to Finishing Department - opening WIP

= 630,000 - 150,000

= 480,000 units

Equivalent units of production for conversion

= EUP opening work in process + units transferred to finishing department + EUP closing work in process

= (40% * 150,000) + 480,000 + (40% * 120,000)

= 60,000 + 480,000 + 48,000

= 588,000 units

EUP opening work in process already had 60% of conversion cost incurred in previous period so only 40% will be incurred in present period.

A person’s _______________ shape how he or she views the world.
a.
visions
b.
beliefs
c.
customs
d.
manners

Answers

Answer:

B

Explanation:

If there is no written designated agency relationship, a client of Meramac Realty has what kind of relationship with Meramac

Answers

Answer: c. A nonagency relationship with everyone in the office.

Explanation:

For an agency relationship to exist in the eyes of the law, there must be a contract with a written designated agency relationship between the client and Meramac Realty.

With no such contract in existence, the law recognizes no agency relationship between Meramac and any of its affiliates with the client. There is therefore a non-agency relationship with everyone in Meramac.

An income property generates $9,200 per month, and is valued at $985,000. What is its gross rent multiplier

Answers

Answer:

107.07

Explanation:

Calculation for What is its gross rent multiplier

Gross rent multiplier= Income Property value/income property generated per month

Let plug in the formula

Gross rent multiplier= $985,000/$9,200 per month

Gross rent multiplier=107.07

Therefore its gross rent multiplier will be 107.07

Crane Corp. had total variable costs of $269,100, total fixed costs of $111,600, and total revenues of $390,000. Compute the required sales in dollars to break even.

Answers

Answer:

the break even point in dollars is $360,000

Explanation:

The computation of the break even sales in dollars is given below:

Break even sales in dollars is

= Fixed cost ÷ contribution margin ratio

where,

Contribution margin ratio is

= (Sales - variable cost) ÷ (Sales)

= ($390,000 - $269,100) ÷ ($390,000)

= 31%

Now the break even point in dollars is

= $111,600 ÷ 0.31

= $360,000

Hence, the break even point in dollars is $360,000

A company reported average total assets of $1,240,000 in Year 1 and $1,510,000 in Year 2. Its net operating cash flow was $102,920 in Year 1 and $138,920 in Year 2. (1) Calculate its cash flow on total assets ratio for both years. (2) Did its cash flow on total assets improve in Year 2 versus Year 1

Answers

Answer:

A. Year 1 8.3%

Year 2 9.2%

B. Yes

Explanation:

(1) Calculation for its cash flow on total assets ratio for both years

Using this formula

Cash flow on total assets ratio =Net operating cash flow/Average total assets

Let plug in the formula

Year 1 Cash flow on total assets ratio=$102,920/$1,240,000

Year 1 Cash flow on total assets ratio=8.3%

Year 2 Cash flow on total assets ratio= 138,920/1,510,000

Year 2 Cash flow on total assets ratio= 9.2%

(2) Based on the above calculation YES it's cash flow on total assets improve in Year 2 versus Year 1

Question # 6
Fill in the Blank
Complete the following sentence. Remember to spell correctly.

Limiting the amount of imported sugar that can be brought into the United States is an example of a(n) ______​

Answers

Answer: Import quota

Explanation:

Import quotas are a means of controlling trade into a country. It is usually done because the good being imported is produced in the importing country but when it is imported it is cheaper which will have the effect of harming the domestic producers.

Import quotas will restrict trade by limiting the amount of the specific good that can be imported into the country within a given period. For instance, the U.S. mandating that only 30,000 tonnes of sugar may come into the country in a year. After that amount, no more sugar will be allowed in.

Outline and discuss the major categories of reimbursements and costs in a health care organization. How do they influence each other

Answers

Answer:

In healthcare organisations, main compensation and expense divisions focus on where they are utilised; there's many various types of entities, including such: profits, non-profit as well as residential. Stockholders of benefit organisations on the company and earn income from them.

Non-profit agencies raise revenue from their patient/consumer programmes and are prohibited from collecting tolls. In private coverage, the organisation department will supply the healthcare professional with direct payment.

The category of service user, such as as someone who spends with his own funds and someone who uses  different private programmes available in market.

A SWOT analysis provides organizational strategists with key information and a realistic assessment and understanding of both the internal and external environments. This activity is important because a SWOT analysis is a useful tool in gathering information about the competitive environment to establish a grand strategy.

The goal of this exercise is to challenge your knowledge of SWOT analysis.
Wrtie down the most appropriate area of the SWOT analysis for each item.


1. The R&D program at the company produces world-class products
2. Our product is targeted to young professionals under 35 years of age. That group is growing.
3. The equipment the company owns is last generation and does not have the latest technology,
4- There have been several up and coming companies that are beginning to enter our market space,
5. Word is that a new highway is being built in the next couple of years. making it easier to transport our products from the factory.
6. The employees who work for us are highly skilled and leaders in their field.
7. Management does not provide a big budget to support the world-class staff that work for the company.
g. The company uses a fair amount of short-term debt financed through the bank. Economic projections indicate that interest rates may rise in the future and credit will be more difficult to obtain

Answers

Answer:

5.    Word is that a new highway is being built in the next couple of years. making it easier to transport our products from the factory.

Explanation:

does anyone know a free app that i can watch shows on? what show u may ask it called the 100​

Answers

Answer:

You can download Tubi or Pluto tv they have shows and movies as well

Explanation:

"Consider a C corporation. The corporation earns $2.5 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 50% of its earnings to its shareholders as a dividend. The corporate tax rate is 30%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 28%. What are the shareholders earnings from the corporation after all corresponding taxes are paid

Answers

Answer:

$0.70 per stock

Explanation:

before tax corporate income = $2.50 per stock

after tax corporate income = $2.50 x (1 - 30%) = $1.75 per stock

distributed dividends = $1.75 x 50% = $0.875 per stock

since the tax rate on dividends is 20%, then the after tax gain earned by stockholders is $0.875 x (1 - 20%) = $0.70 per stock

Some dividends are taxed as long term capital gains (like these), which decreases the tax rate paid by stockholders. If they were taxed at the normal income rate, the tax rate would have been 8% higher.

If the future value of an ordinary, 7-year annuity is $10.000 and interest rates are 4 percent, what is the future value of the same annuity due?

Answers

Answer:

The future value of the same annuity due is $10,400.

Explanation:

Step 1: Calculation of the annuity payment

This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = P * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value of the amount after 7 years = $10.000

P = Annuity payment = ?

r = interest rate = 4%, or 0.04

n = number of years = 7

Substituting the values into equation (1) and solve for P, we have:

10,000 = P * (((1 + 0.04)^7 - 1) / 0.04)

10,000 = P * 7.89829448089601

P = 10,000 / 7.89829448089601

P = $1,266.09612039504

Step 2: Calculation of the future value of the same annuity due

This can be calculated using the formula for calculating the Future Value (FV) of an Annuity Due as follows:

FV = P * (((1 + r)^n - 1) / r) * (1 + r) ................................. (2)

Where,

FV = Future value the same annuity due = ?

P = Annuity payment as obtained in Step 1 above = $1,266.09612039504

r = interest rate = 4%, or 0.04

n = number of years = 7

Substituting the values into equation (2), we have:

FV = $1,266.09612039504 * (((1 + 0.04)^7 - 1) / 0.04) * (1 + 0.04)

FV = $1,266.09612039504 * 7.89829448089601 * 1.04

FV = $10,400

Therefore, the future value of the same annuity due is $10,400.

Question #5
Multiple Choice
The basic calculation for Cost of Goods Sold for a retail business is:
Beginning Inventory + Inventory Purchases + End Inventory = Cost of Goods Sold
O Beginning Inventory + Inventory Purchases - End Inventory = Cost of Goods Sold
Beginning Inventory - Inventory Purchases - End Inventory = Cost of Goods Sold
O Beginning Inventory - Inventory Purchases + End Inventory = Cost of Goods Sold
© 2016 Glynlvon, Inc.

Answers

Starting inventory + purchases - ending inventory = cost of goods sold.

Answer:

the correct answer is b

Explanation:

If the reserve ratio is 5 percent, then $500 of additional reserves would ultimately generate:________

Answers

Answer: B. $10,000 of new money.

Explanation:

If the reserve ratio is 5 percent, then $500 of additional reserves would ultimately generate $10,000 of new money. Thus, option B is correct.

 

What is reserve ratio?

Capital requirements are rules established by central banks that specify the minimal volume of liquid assets that a financial institution must retain. The amount of reservable obligations as commercial banks must keep onto but instead of lend outside or reinvest is known as the reserve ratio.

The sum of money that a bank must have in reserve in order to pay its obligations in the event of unforeseen departures is known as the deposits. The central bank uses margin requirements as little more than a tool to alter the amount of cash in the system and affect lending rates.

The formula will be derived as the

(Additional reserve/ rate or the percent) * 100

= ( 500 / 5) 100

= 10000

Therefore, option B is the correct option.

Learn more about reserve ratio, here:

https://brainly.com/question/14276095

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The question is incomplete, the complete question will be:

A. $10,500 of new money.

B. $10,000 of new money.

C. $9,500 of new money.

D. $2,500 of new money.

New York City is the most-visited city in the world.

A. True
B. False

Answers

Answer:

A. True

Explanation:

New York is the most popular city in the US and home to the world-famous statue of liberty. New York city has attractive tourist destination sites and offers wonderful shopping experiences. In 2019, the city welcomed over 13.5 million visitors from outside the US.

New York is the most sought tourist destination. It is also the most visited city in the world.

True.

So far the most-visited city's in the world are, 1st= New York City (66.6million), 2nd= London (30million) and 3rd= Bangkok (22.7million).

Jamison Construction has implemented a cost estimation system using regression analysis. The variable cost per hour of labor is $35 and the fixed cost was determined to be $186,000. If Jamison projects it will be working 204,000 hours in 2019, what is the projected total cost

Answers

Answer:

$7,326,000

Explanation:

Calculation for what is the projected total cost

Using this formula

Projected total cost=(Projected hours*Variable cost per hour of labor)+Fixed cost

Let plug in the formula

Projected total cost=(204,000 hours*$35)+$186,000

Projected total cost=$7,140,000+$186,000

Projected total cost=$7,326,000

Therefore the projected total cost will be $7,326,000

An encumbrance: Group of answer choices is always a lien. burdens the property. cannot affect the physical use of a property. all of the answers are correct.

Answers

Answer:

burdens the property.

Explanation:

An encumbrance may be defined as the legal liability or interest in a property which does not prohibits the passing title to the property, instead it can diminish value. In other words it is an obstruction or a burden.

It is a claim by a party against a property who is not the owner of the property. It largely impacts the transferability of that property and also restrict the free use until encumbrance is lifted. It is the obstructions which impedes and is burdensome.

Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October.

Sales (4,000 units) $88,000
Variable expenses 40,000
Contribution margin 48,000
Fixed expenses 41,700
Net operating income $6,300

If the company sells 3,500 units, its net operating income should be closest to:_______

a. $5,513
b. -$4,700
c. $6,300
d. $300

Answers

Answer:

d. $300

Explanation:

Calculation for what its net operating income should be closest to

Using this formula

First step is to calculate the contribution margin per unit using this formula

Contribution margin per unit= Contribution margin ÷ Number of units

Let plug in the formula

Contribution margin per unit= $48,000 ÷ 4,000 units

Contribution margin per unit= $12

Second step is to calculate the contribution margin

Contribution margin = 3,500 units × $12

Contribution margin = $42,000

Now let calculate the net operating income using this formula

Net operating income = Sales - Variable cost - Fixed expenses

Let plug in the formula

Net operating income= $42,000 - $41,700

Net operating income= $300

Therefore its net operating income should be closest to $300

I'm asking again because I legit need help on this. Best answer gets brainliest.

One of the biggest differences between a public sector business and a private sector business is the use of tax dollars. Public sectors businesses entirely run off of tax money, while private sector business depend on making money through selling goods or services.

1. What do you see as some of the POSITIVE aspects of depending on tax money to run a business?

2. What do you see as some of the NEGATIVE aspects of depending on tax money to run a business.

Answers

Answer:

1. the positively here is you are sure of the money need to run the business even without one doing much as long as taxes are paid and these business sectors under this category are non profit organization but for the betterment of the people

Explanation:

2. no profit is made so no gain, no specifiation on the goods to fit the requirements of the masses and mass production is mostly low quality.

What are the portfolio weights for a portfolio that has 130 shares of Stock A that sell for $40 per share and 110 shares of Stock B that sell for $30 per share

Answers

Answer:portfolio Weight of A =0.6118; portfolio Weight of B=0.3882

Explanation:

stock A  Investment = Number of shares x market value

=130 x 40 = $5200

stock B investment =Number of shares x market value

110 x 30 =    $3,300

Total Investments= $5200 +  $3,300  = $8,500

portfolio Weight = stock  Investment / Total investment

portfolio Weight of A= 5200/ 8,500 =0.6118

portfolio Weight of B = 3,300 / 8,500 =0.3882

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