Assume that, on January 1, 2018, Matsui Co. paid $809,600 for its investment in 35,200 shares of Yankee Inc. Further, assume that Yankee has 160,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $320,000 at January 1, 2018. The following information pertains to Yankee during 2018: Net Income $ 160,000 Dividends declared and paid $ 48,000 Market price of common stock on 12/31/2018 $ 25 /share 1. What amount would Matsui report in its year-end 2018 balance sheet for its investment in Yankee?

Answers

Answer 1
Answer:

Answer:

The amount that Matsui would report in its year-end 2018 balance sheet for its investment in Yankee is $804992.

Explanation:

Year end balance = Beginning balance + Net income - Dividend

                               = $809,600 + (35,200*36%) - ($ 48,000*36%)

                              = $809,600 + $12672 - $17280

                              = $804992

Therefore, The amount that Matsui would report in its year-end 2018 balance sheet for its investment in Yankee is $804992.


Related Questions

Hayes Corp. is a manufacturer of truck trailers. On January 1, 2021, Hayes Corp. leases ten trailers to Lester Company under a six-year non-cancelable lease agreement. The following information about the lease and the trailers is provided: 1) Annual payment of $120,175 is due on January 1, 2021 and at December 31 from 2021 to 2025. Hayes Corp. has an implicit rate of 8% (present value factor for 6 periods at 8% is 4.99271). 2) Titles to the trailers pass to Lester at the end of the lease. 3) The fair value of each trailer is $60,000. The cost of each trailer to Hayes Corp. is $54,000. Each trailer has an expected useful life of nine years. 4) Collectibility of the lease payments is probable. Instructions (a) What type of lease is this for the Lester Company and Hayes Corp? (b) Prepare a lease amortization schedule for Lester Company till 12/31/2021. (c) Prepare the journal entries for Lester Company on 1/1/2021 and 12/31/2021. Round all amounts to the nearest dollar.
The audit expectation gap occurs when there is a difference between the expectations of the ________. a. generally accepted accounting principles and auditors. b. auditors and company under review. c. auditors and financial statement users. d. company under review and financial statement users.
The following trial balance of Reese Corp. at December 31, 2017 has been properly adjusted except for the income tax expense adjustment.Reese Corp.Trial BalanceDecember 31, 2017Dr. Cr.Cash $ 875,000 Accounts receivable (net) 2,695,000 Inventory 2,085,000 Property, plant, and equipment (net) 7,566,000 Accounts payable and accrued liabilities $ 1,761,000Income taxes payable 654,000Deferred income tax liability 85,000Common stock 2,350,000Additional paid-in capital 3,680,000Retained earnings, 1/1/17 3,490,000Net sales and other revenues 13,560,000Costs and expenses 11,180,000 Income tax expenses 1,179,000 $25,480,000 $25,480,000Other financial data for the year ended December 31, 2017:• Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000. The last payment is due December 29, 2019.• The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose in a prior year, of which $20,000 is classified as a current liability.• During the year, estimated tax payments of $525,000 were charged to income tax expense. The current and future tax rate on all types of income is 30%.In Reese's December 31, 2017 balance sheet,The current assets total is: ????The current liabilities total is: ????The final retained earnings balance is: ????
Activities of a central motor pool that provides and services vehicles for the use of municipal employees on official business should be accounted for in a. General Fund. b. Enterprise Fund. c. Internal Service Fund. d. Special Revenue Fund.
The Accounts Receivable balance for Bach Consulting is $4,400,000 as of May 31, 2020. Before calculating and recording the month’s bad debt expense, there is a credit balance in the Allowance for Doubtful Accounts of $80,000. The May 2020 net sales were $30,000,000. In the past several years, 1% of net sales have proven uncollectible. An aging of accounts receivable results in a $360,000 estimate for the Allowance for Doubtful Accounts as of May 31, 2020.PART A: PERCENT OF SALES METHODAssume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.What adjusting entry does Bach make to record May 2020 Bad Debt Expense?What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________PART B: ANALYSIS OF RECEIVABLES METHODAssume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.What adjusting entry does Bach make to record May 2020 Bad Debt Expense?What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________Problem 3 Use PVH Corp.’s financial statement information to answer the following questions.Provide the following account balances for PVH:February 2, 2020February 3, 2019Accounts Receivable (gross)Allowance for Doubtful AccountsAccounts Receivable, netWhich of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)? Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020? Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020? Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019. Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.

Eaton Tool Company has fixed costs of $266, 600, sells its units for $68, and has variable costs of $37 per unit. a. Compute the break-even point.
b. Ms. Eaton comes up with a new plan to cut fixed costs to $210,000. However, more labor will now be required, which will increase variable costs per unit to $40. The sales price will remain at $68. What is the new break-even point?
c. . Under the new plan, what is likely to happen to profitability at very high volume levels (compared to the old plan)?

a. Profitability will be less
b. Profitability will be more

Answers

Answer:

a. $584,800

b. $510,000

c.  Profitability will be more

Explanation:

a.

Contribution Margin = Selling price - variable cost  = $68 - $37 = $31

The break-even point is the level of sales at which the business incur no profit no loss.Fixed and variable costs are covered at this level of sales. Use following formula of break-even to calculate the fixed cost.

Break-even point = Fixed cost / Contribution margin ratio

Break-even point = $266,600 / ($31 / $68) = $584,800

b.

Contribution Margin = Selling price - variable cost  = $68 - $40 = $28

Break-even point = Fixed cost / Contribution margin ratio

Break-even point = $210,000 / ($28 / $68) = $510,000

c.

As the break-even point is decreases it means the cost of associated with the product is decreased because the selling price remains constant. Although there is an increase in the variable cost but reduction in fixed cost has more effect than increase in variable cost.

Monitoring Central Bank Intervention1) How can your business be affected if the Fed attempts to strengthen the dollar in the for-eign exchange market?2) If the Fed decides to weaken the dollar, how will your business be affected?3) How can indirect central bank intervention affect your business even if there is no impact on exchange rates?

Answers

Answer:

1) if the FED decides to strengthen then dollar, it will make US exports more expensive and imports cheaper. That will cause net exports to decrease, i.e. there will be less exports and more imports.

A strengthening of the US dollar helps importing companies because they will buy cheaper goods from abroad and will be able to sell them at higher domestic prices. On the other hand, exporting companies will be hit because hey loss competitiveness since their products will be more expensive.

2) If the FED decides to weaken the US dollar, the opposite will happen. Exporting companies will be favored, while importing companies will be hurt. The country will start to export more and import less.

3) Generally, the FED intervenes market through its money supply policy. When the interest rate increases or the money supply increases, the value of the US dollar will tend to lower. Even if expansionary monetary policy doesn't have an immediate impact, the expectations do matter. If people expect a devaluation of the US dollar, they will start to buy foreign currencies, which in turn will end up devaluating the US dollar. It is a self-fulfilled prophecy.

Another way the FED impacts businesses is through the interest rate. Lower interest rates will increase both domestic and foreign investment in the US.

Part Three: Neighboring WSU dropped their tuition and fees by 14 percent and TTA saw enrollment fall from 8,400 to 7,400. What is the cross elasticity between the two schools.?

Answers

Answer:

0.85

Explanation:

Given that

Dropped percentage of tuition and fees = 14%

Enrollment fall from 8,400 to 7,400

So, the cross elasticity between the two schools is

= Percentage change in quantity demanded of one good ÷ Percentage change in price of another good

where,

Percentage change in quantity demanded of one good equals to

= ($7,400 - $8,400) ÷ ($8,400)

= -11.9%

And, the percentage change in price of another good is -14%

So, the cross elasticity is

= -11.9% ÷ -14%

= 0.85

Over the next 14 years, inflation is expected to be 5 percent per year in Ectenia and 10 percent per year in Wiknam. If this inflation comes to pass, what will happen over this period to the price of Spam and the exchange rate?

Answers

Answer:

1.8pesos

2.Price of Spam in Ecteria as well as in Wiknam will increase

Explanation:

8 Pesos per dollar=16/2=8pesos

Ans for 2)

Price of Spam in Ecteria as well as in Wiknam will increase

Refer to the scenario above. If the terms of trade are 1.5 kilos of cloudberries for a kilo of salted cod, the terms of trade are ________

Answers

Answer:

B. Advantageous  for both Norway and Sweden.

Explanation:

The full question is missing but have been attached as picture below.

Options Includes "A. advantageous for Norway but not for Sweden, B. advantageous for both Norway and Sweden, C. advantageous for Sweden but not for Norway, D. not advantageous for either Norway or Sweden"

Norway's opportunity cost of salted cod is 1 cloud berries and 2 cloud berries for Sweden. Since the international price lies between Norway's and Sweden's opportunity cost, it is beneficial for both of them.

Final answer:

The terms of trade in the asked scenario are 1.5 kilos of cloudberries for a kilo of salted cod. It's the rate at which these goods are exchanged for one another.

Explanation:

The term 'Terms of Trade' in economics is used to define the rate at which one country's goods are exchanged for another's. In the given scenario, the terms of trade are established at 1.5 kilos of cloudberries for a kilo of salted cod. This indicates that, in this specific situation, 1.5 kilos of cloudberries are considered equivalent in value to a kilo of salted cod. The ratio of the exchange (1.5:1 in this case) is what's referred to as the terms of trade.

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Canada is currently the second largest producer of nickel in the world. The recent reopening of the world famous Voisey's Bay mine, which has total resources estimated at 124 million tons of nickel-bearing ore, should give Canada a clear:comparative advantage

Answers

Answer:

The correct answer is: comparative advantage.

Explanation:

In Business, comparative advantage is an advantage that a company has over its competitors. The strategy relies on the company being able to produce at a lower comparative cost. This is achieved by lowering production costs or by introducing more efficient manufacturing strategies.

In Canada's case, the reopening of Voisey's Bay mine implies an opportunity to lower the costs of the commercialization of nickel since there will be more of that resource available for extraction.

Final answer:

Canada, being a significant nickel producer with the reopening of Voisey's Bay mine, is said to have a comparative advantage. This term refers to a country's ability to produce goods at lower opportunity costs compared to others, which allows Canada to efficiently produce and export nickel.

Explanation:

Canada's position as the world's second-largest producer of nickel, paired with the reopening of the Voisey's Bay mine, equips Canada with what is known as a comparative advantage in the global nickel market. A comparative advantage refers to a country's ability to produce a certain good or service at lower opportunity cost than its trading partners. In this case, due to the vast resources of nickel-bearing ore at Voisey's Bay, Canada has a cost advantage, which enables Canada to produce and export nickel more efficiently than other countries.

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