Business, 12.12.2019 01:31 knussoshd3603
On january 1, 2016, dermot company purchased 15% of the voting common stock of horne corp. on january 1, 2018, dermot purchased 28% of horne’s voting common stock. if dermot achieves significant influence with this new investment, how must dermot account for the change to the equity method?
multiple choice
it must use the equity method for 2018 but should make no changes in its financial statements for 2017 and 2016.
it must restate the financial statements for 2017 as if the equity method had been used then.
it must restate the financial statements for 2017 and 2016 as if the equity method had been used for those two years.
incorrect
it should prepare consolidated financial statements for 2018.
it should record a prior period adjustment at the beginning of 2018 but should not restate the financial statements for 2017 and 2016.
Answers: 1
Another question on Business
Business, 21.06.2019 23:00
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,500 are payable at the beginning of each year. each is a finance lease for the lessee. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) situation 1 2 3 4 lease term (years) 3 3 3 3 asset’s useful life (years) 3 4 4 6 lessor’s implicit rate (known by lessee) 14 % 14 % 14 % 14 % residual value: guaranteed by lessee 0 $ 5,000 $ 2,500 0 unguaranteed 0 0 $ 2,500 $ 5,000 purchase option: after (years) none 2 3 3 exercise price n/a $ 7,500 $ 1,500 $ 3,500 reasonably certain? n/a no no yes
Answers: 1
Business, 22.06.2019 01:00
In order to gauge public opinion about how to handle iran's growing nuclear program, a research group surveyed 1010 americans by telephone and asked them to rate the threat iran's nuclear program poses to the world on a scale of 1 to 10. describe the population, sample, population parameters, and sample statistics. identify the population in the given problem. choose the correct answer below.
Answers: 2
Business, 22.06.2019 11:00
Factors like the unemployment rate,the stock market,global trade,economic policy,and the economic situation of other countries have no influence on the financial status of individuals. true or false
Answers: 1
Business, 22.06.2019 15:20
Garfield corporation is considering building a new plant in canada. it predicts sales at the new plant to be 50,000 units at $5.00/unit. below is a listing of estimated expenses. category total annual expenses % of annual expense that are fixed materials $50,000 10% labor $90,000 20% overhead $40,000 30% marketing/admin $20,000 50% a canadian firm was contracted to sell the product and will receive a commission of 10% of the sales price. no u.s. home office expenses will be allocated to the new facility. the contribution margin ratio for garfield corporation is
Answers: 2
You know the right answer?
On january 1, 2016, dermot company purchased 15% of the voting common stock of horne corp. on januar...
Questions
