6. In the case of an investment in equity securities where the investor does not have significant influence and the investment is carried at fair value, a dividend from the investee is: a. A reduction of the carrying amount of the investment. b. Income to the investor in the period of declaration. c. An expense to the investor in the period of declaration. d. A direct increase to retained earnings of the investor to offset the direct decrease to retained earnings of the investee.

Answers

Answer 1
Answer:

Answer:

b. Income to the investor in the period of declaration.

Explanation:

The dividend received will be a income for investors because the dividend received is the return on securities. It will not be deducted from the equity balance neither it is an expense for investors. A direct increase in retained earning to settles the previous losses is the fair value adjustment.


Related Questions

Two models for department store success seem to be emerging—one with a strong retail brand approach and one as a showcase store. Investigate these two differing approaches to department store retailing and comment on the future of these concepts using the concepts defined in this chapter (target market selection, product assortment decisions, etc.).What is the meaning of showcase store?
In an attempt to have funds for a down payment in five years, james dupont plans to save $3,800 a year for the next five years. with an interest rate of 4 percent, what amount will james have available for a down payment after the five years?
Back Bay Company is a price−taker and uses target pricing. Refer to the following​ information:Production volume602,000units per yearMarket price$34per unitDesired operating income17​%of total assetsTotal assets$13,800,000What is the target full product cost per​ unit? (Round your answer to nearest​ cent.) Assume all units produced are sold.
A 7X Corp.just paid a dividend of $2.30 per share. The dividend are expected to grow at 23 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 15 percent, what is the price of the stock today?
During the previous year, Yvo Corp. installed a production assembly line to manufacture furniture. In the current year, Yvo purchased a new machine and rearranged the assembly line to install this machine. The rearrangement did not increase the estimated useful life of the assembly line, but it did result in significantly more efficient production. The following expenditures were incurred in connection with this project:Machine $75,000Labor to install machine 14,000Parts added in rearranging the assembly line toprovide future benefits 40,000Labor and overhead to rearrange the assembly line 18,000What amount of the above expenditures should be capitalized in the current year?A. $147,000B. $107,000C. $89,000D. $75,000

Which of the following is false about investing with borrowed money? (5 points)There is increased risk.

If you lose money, you will still have payments on it.

It is the best way to ensure you have retirement funds.

No investment is a sure deal

Answers

It is the best way to ensure you have retirement funds. 

Retirement funds are generally a conservative investment and investing with borrowed money is seen as a risky activity because it requires payment, regardless of whether you earn additional money through investing or not. Because no investment is a sure deal, the investment process carries risk and the loan requires certain outflows in payments. Therefore, it is not often prudent to use this technique when investing for retirement. 

Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $489,000, variable expenses of $360,000, and fixed expenses of $140,000. Therefore, the gloves and mittens line had a net loss of $11,000. If Gator eliminates the line, $35,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Continue Eliminate Net Income Increase (Decrease) Sales $ $ $ Variable costs Contribution margin Fixed costs Net income / (Loss) $ $ $ The analysis indicates that Gator should the gloves and mittens line.

Answers

Answer:

The analysis indicates that Gator should manufacture gloves and mittens otherwise loss will be increased by $24,900

Explanation:

Given Data:

sales = $489,000,

variable expenses = $360,000

fixed expenses = $140,000.  

                                   Continue      Eliminate           Net Income

                                                                                 Increase (Decrease)

Sales                           $489,000              0              -$489,000

Variable costs            $360,000              0               $360,000

Contribution margin    $129,900             0              -$129,900

Fixed costs                140,000            $35,000         $105,000

Net income                -$10,100           -$35,000     -$24,900

The analysis indicates that Gator should manufacture gloves and mittens otherwise loss will be increased by $24,900

Edward leaves an organization for three years to fulfill military duties. Which observation is true of his employer's obligation to reemploy Edward under the Uniformed Services Employment and Reemployment Rights Act?A) The employer is not obligated to reemploy Edward.


B) The employer must reemploy Edward with the same seniority and status he would have earned if his employment had not been interrupted.


C) The employer must reemploy Edward but is exempted from providing him any fringe benefits or retirement benefits.


D) The employer must implement an early retirement incentive program for Edward.


E) The employer must reemploy Edward with a lower pay scale to compensate for his absence.

Answers

Answer:

The corrwct option is B

Explanation:

The USERRA is a federal statute that protects servicemen and veterans civilian employment rights. Under certain conditions USERRA requires employers to put individuals back to work after their military service

Which of the following statements are inconsistent with the efficient market hypothesis?a. The average annual return on stocks is greater than zero. b. Stocks that outperform the index in March always underperform it in April. c. Half of fund managers are able to beat their relevant index each year, before fees. d. Stocks that outperform the index in March always outperform it in April.

Answers

Answer:

b. Stocks that outperform the index in March always underperform it in April.

d. Stocks that outperform the index in March always outperform it in April.

Explanation:

The Efficient market hypothesis states that in an efficient market, all the available information in the market are reflected in the prices of the stocks being traded. As such, all stock are fairly priced.

Stocks that perform in a certain way in March and then in another way in April are violations of the hypothesis. This is because if indeed the market was efficient, the prices would adjust to reflect the different performances by month such that there would be no more fluctuations.

In 2016, Teller Company sold 3,000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $270,000. The same selling price, variable expenses, and fixed expenses are expected for 2017. What is Teller's break-even point in units for 2017

Answers

Answer:

1500

Explanation:

Breakeven point is the number of units produced and sold where net income is art on it is where revenue equals cost.

The formula for calculating break even points = F / (P - V)

F = fixed cost

P = price

V = variable cost per unit

$270,000 / ($600 - $420) = 1500

I hope my answer helps you

Gitli Company sells its product for $ 55 and has variable cost of $ 30 per unit. The total fixed costs are $ 25 comma 000. What will be the effect on the breakeven point in units if variable cost increases by $ 10 due to an increase in the cost of direct​ materials? (Round your answer up to the nearest whole​ unit.) A. It will decrease by 667 units. B. It will increase by 167 units. C. It will decrease by 167 units. D. It will increase by 667 units.

Answers

Answer:

D. It will increase by 667 units.

Explanation:

The calculation of break-even point is shown below:-

Contribution Per Unit (before increase in Variable Cost) = Unit sale price - Unit Variable Cost

= $55 - $30

= $25

Break-Even (Units) = Fixed Cost ÷ Division Contribution per unit

= $25,000 ÷ $25

= 1,000

New Variable Cost per unit = $30 + $10 (Increase in Direct material cost) = $40

Selling Price = $55

New Contribution per unit = $55 - $40 = $15

New Break-Even (Units) = Fixed Cost ÷ New Contribution per unit

= $25,000 ÷ $15

= 1,667

Increase in Break-Even Units(after increase in D.M cost) = New Break even point - Old Break even point

= 1,667 - 1,000 units

= 667 units

Therefore, The Break even points units will increase by 667 units, if the D.M cost increases by $10 per unit.