Under the equity method, why does the investor company measure revenue on a proportionate basis when income
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (18 reviews)
Under the equity method investment revenue is measured on a proportionate basis b...View the full answer
Answered By
Jeff Omollo
As an educator I have had the opportunity to work with students of all ages and backgrounds. Throughout my career, I have developed a teaching style that encourages student engagement and promotes active learning. My education and tutoring skills has enabled me to empower students to become lifelong learners.
5.00+
5+ Reviews
42+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
The parents retained earnings under the equity method should be equal to ________. Multiple Choice the parents retained earnings the subsidiarys retained earnings the difference between the parents...
-
When and how does the investor company measure investment income under the fair value method?
-
Under the equity method, when the company's share of cumulative losses equals its investment, and the company has no obligation to fund such additional losses, which of the following statements is...
-
Steve is a member of a local church. May he deduct as a charitable contribution the commuting expenses for the Sundays that he is assigned to usher?
-
Renata Corporation purchased equipment in 2013 for $180,000 and has taken $83,000 of regular MACRS depreciation. Renata Corporation sells the equipment in 2015 for $110,000. What is the amount and...
-
Assume that on January 1 of year 1, Midtown Auto Repair purchased equipment at a cost of $48,000. Management expects the equipment to remain in service for five years, with zero residual value....
-
Relating sales and cash receipts to the subsidiary ledger Model Trains Enthusiasts Shops sales and cash receipts journals for the month of April are presented below. The accounts receivable...
-
The following book and fair values were available for Westmont Company as of March 1. Arturo Company pays $4,000,000 cash and issues 20,000 shares of its $2 par value common stock (fair value of $50...
-
(a) An investor purchased 300 units of a Mutual Fund at Rs. 12.25 per unit on 31 December, 2009. As on 31st December, 2010 he has received Rs. 1.25 as dividend and Rs. 1.00 as capital gains...
-
Ethanol is getting wider use as car fuel when mixed with gasoline.3 A car manufacturer wants to evaluate the performance of engines using ethanol mix with that of pure gasoline. The sample average...
-
Under the fair value method, when and how does the investor company measure revenue?
-
Under the equity method, dividends received from the affiliate company are not recorded as revenue. To record dividends as revenue involves double counting. Explain.
-
Use Newtons method to find all the solutions of the equation correct to eight decimal places. Start by drawing a graph to find initial approximations. - 3x* + x x x + 6 = 0
-
John and Mary Hughes file their income tax return on a calendar year basis. John dies on May 15, 2018. Mary remarries on July 4, 2018. Can Mary file a joint return with John for the taxable year 2018?
-
In problem 49, when does the estate's taxable year end? problem 49, John Henry died on May 1, 2018. When does his final 1040 have to be filed?
-
If Doria Oliva dies this year (2018), what estate tax is payable if the facts are: Adjusted gross estate $11,510,000 Adjusted taxable gifts after 1976 Gift tax paid 100,000 6,000
-
In January 2022, United Airlines (UAL) had a market capitalization of \($14.3\) billion, debt of \($39.4\) billion, and cash of \($18.4\) billion. United Airlines had revenues of \($24.6\) billion....
-
In 2018, Cabell Mapp passed away in Belle Haven, Virginia. Pursuant to his will, a testamentary trust was established. The trust instrument requires that \(\$ 10,000\) a year be paid to the...
-
What practical exercises of the facets of self-leadership could be implemented to help the people in my organization attain their purpose and the purpose of the firm simultaneously?
-
What do you think?
-
According to AS-16 how foreign currency difference is accounted for (a) It is expensed (b) It is capitalized (c) Neither of these (d) Either of these
-
Before a voucher for the purchase of merchandise is approved for payment, supporting documents should be compared to verify the accuracy of the liability. Give an example of supporting documents for...
-
The balance of Cash is likely to differ from the bank statement balance. What two factors are likely to be responsible for the difference?
-
The balance of Cash is likely to differ from the bank statement balance. What two factors are likely to be responsible for the difference?
-
What results have researchers found on what therapy is better clinical psychology therapists or positive psychology therapists?
-
PAIBOC Questions and analysis Scenario: Seneca has decided to hold a health promotion day for students and faculty next month. In preparation for this event, Seneca students are invited to share...
-
What is Clinical Psychology? Answers I specifically have are: What does this specialty work on specifically? How do the different types of psychologies relate to the study Clinical Psychologists do?...
Study smarter with the SolutionInn App