Your classmate Kate believes that the equity method is applied with a strict application of the 20%
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
The 20 rule is that an investment direct or indirect of 20 percent or more of the voting stock of an ...View the full answer
Answered By
Wahome Michael
I am a CPA finalist and a graduate in Bachelor of commerce. I am a full time writer with 4 years experience in academic writing (essays, Thesis, dissertation and research). I am also a full time writer which assures you of my quality, deep knowledge of your task requirement and timeliness. Assign me your task and you shall have the best.
Thanks in advance
4.90+
63+ Reviews
132+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Question Posted:
Students also viewed these Accounting questions
-
The equity method is usually used for long-term investments. Do you think this is appropriate? Explain.
-
When the equity method is applied, what disclosures should be made in the investors financial statements?
-
When the equity method is applied, what amounts relate to the investment, and where will these amounts be reported in the financial statements?
-
A recent PwC Supply Global Chain survey indicated that companies that acknowledge the supply chain as a strategic asset achieve 70% higher performance. The Leaders in the survey point to...
-
In the op amp circuit of Fig. 10.118, find the closed-loop gain and phase shift of the output Voltage with respect to the input Voltage if Ci = C2 = nF, R1 = R2 = kΩ, 20 3 R3 = 20...
-
In the population of children in grade 5 in the United States, 2 5 % score below 5 . 0 on a math test. Marjorie obtains a random sample of 1 0 2 grade 5 children. What is the probability that the...
-
Carbon Dioxide Levels Over Time Scientists are concerned about global warming and the effect of carbon dioxide emissions on the atmosphere. Figure 2.89 shows the concentration of carbon dioxide...
-
Eric, your friend, received his Form W-2 from his employer (below) and has asked for your help. Erics 2018 salary was $145,000 and he does not understand why the amounts in Boxes 1, 3 and 5 are not...
-
What is the effect on Mobile Select of a stronger dollar and a lower level of sales in the UK provided by Pogue? The sales, production costs and earnings decrease significantly.
-
Suppose Good-to-Go (Problem 4-22) is considering the possible introduction of two new products to its line of suitcases: the Compact model (for teenagers) and the Kiddo model (for children). Market...
-
Capulet Company establishes a stock-appreciation rights program that entitles its new president Ben Davis to receive cash for the difference between the market price of the stock and a...
-
Raleigh Corp. has an investment with a carrying value (equity method) on its books of $170,000 representing a 30% interest in Borg Company, which suffered a $620,000 loss this year. How should...
-
Zinc has five naturally occurring isotopes: 48.63% of 64 Znwith an atomic weight of 63.929 amu; 27.90% of66Zn with an atomic weight of 65.926 amu; 4.10% of 67Zn with an atomic weight of 66.927 amu;...
-
2. Using the single index regression, compute E[Rit], var (Rit), cov (Rit, Rit) and cov (Rit, Rjs). 3. Consider the special case of three assets (i matrix, , based on the single index model. =...
-
Which leadership theory best describes Ursula Burn's approach to leading people?
-
How do you know your jobs are being paid competitively?
-
Misha Crystal Ball, Inc. makes crystal balls and the fancy stands for them. Last year the company made 5,000 completed units with the following costs for the stands: Direct materials $5.00 Direct...
-
What roles do learning and education play in determining a person's ability ?
-
Find an equation in polar coordinates of the line through the origin with slope 1 2.
-
The following table shows the rates of total return in successive years from 2004 to 2008 for the Sprott Canadian Equity Fund and for the benchmark Toronto Stock Exchange S&P/TSX Composite Index. By...
-
Arnold Inc. is considering a proposal to manufacture high-end protein bars used as food supplements by body builders. The project requires use of an existing warehouse, which the firm acquired three...
-
Oxford Corporation began operations in 2010 and reported pretax financial income of $225,000 for the year. Oxfords tax depreciation exceeded its book depreciation by $40,000. Oxfords tax rate for...
-
Using the information from BE19-2, assume this is the only difference between Oxfords pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred...
-
At December 31, 2010, Appaloosa Corporation had a deferred tax liability of $25,000. At December 31, 2011, the deferred tax liability is $42,000. The corporations 2011 current tax expense is $48,000....
-
Details of the capital structure of Webber Ltd. appear below: Bonds Number issued Coupon rate Interest payments Years to maturity 27,000 6% semi-annually 10 $90 Current price Preferred shares Number...
-
An Ice cream company has commissioned an ice sculpture for their end of year celebration. The ice sculpture is in the shape of a giant ice cream cone-the shape can be thought of as a cone with one...
-
1. A soft drink vendor at a popular beach resort analyzes his sales records and finds that if he seels x cans of pop in one day, his profit in dollars is given by the function P(x) = -0.012+3x-80....
Study smarter with the SolutionInn App