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aalyn [17]
2 years ago
12

On January 1, 20X9, Pitcher Corporation purchased 100 percent of Softball's stock. All tangible assets had a remaining economic

life of 10 years at January 1, 20X9. Both companies use the FIFO inventory method. Softball reported net income of $17,000 in 20X9 and paid dividends of $4,700. Pitcher uses the equity method in accounting for its investment in Softball.
Business
1 answer:
mina [271]2 years ago
5 0

Answer:

The question is not complete,find attached complete question in word document.

Find all the journal entries in the attached spreadsheet

Explanation:

Please note the following points:

The goodwill is the excess of purchase consideration of $ 476,500.00  over the net assets of Softball acquired,that is $ 318,000.00  

The net assets is total assets acquired of $374,000 minus the liabilities taken over of $56000

Equity method income is the difference between Softball's net income reported and the dividends paid

Download docx
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> docx </span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> xlsx </span>
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1 year ago
Henderson Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the mar
Studentka2010 [4]

Answer:

25%

Explanation:

the margin of safety is the percent of sales which the company is above the break even point.

We solve for the break even point:

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{36,000}{0.24} = Break\: Even\: Point_{dollars}

BEP  = 150,000

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Now we compare against our sales:

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1 year ago
The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next
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3 0
1 year ago
Your company plans to borrow $12 million for 12 months, and your banker gives you a stated rate of 21 percent interest. Calculat
mina [271]

Answer:

The correct answer is 23.86%.

Explanation:

According to the scenario, the given data are as follows:

Loan amount = $12,000,000

Time period = 12 months

Rate of interest = 21%

compensating balance = 12%

So we can calculate the effective rate of interest by using following method:

Effective rate of interest = (Loan amount × Interest Rate ) ÷ Loan amount × (1 – compensating balance )

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= ( $12,000,000 × 0.21) ÷ ($12,000,000 × (1-0.12)

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8 0
1 year ago
Suppose the demand function for avocados is Q = 104 - 40p + 20tp + 0.01Y, where p is the price of avocados, pt is the price of t
LiRa [457]

Answer: equilibrium price = 4

Quantity of avocado = 110units

Explanation:

Q = 104 - 40p + 20tp + 0.01Y........eq1

Q = 58 + 15p - 20pf...........eq2

pt = $0.80,

Y = $4,000,

pf = $0.40

From eqn1 substituting of into it

Q = 104 - 40p + 20($0.80) + 0.01($4000)

= 104 - 40p + 16 + 40

= 160/40p

p = 4 equilibrium price

From eqn2. Substituting p and pf into it.

Q = 58 + 15p - 20pf

Q = 58 + 15(4) - 20($0.40).

Q = 58 + 60 - 8

Q = 110 quantity of avocado

8 0
2 years ago
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