Perimeter, inc. acquired 30 percent of south co.'s (south) voting stock for $200,000 on january 1, 20x1. perimeter's 30 percent interest in south gave perimeter the ability to exercise significant influence over south's operating and financial policies. on that date, south reported assets of $500,000 and liabilities of $100,000. south had equipment with a book value of $60,000 that was actually worth $160,000. the equipment had a remaining useful life of five years. during 20x1, south reported net income of $80,000 and paid dividends of $50,000. what amount of income should perimeter recognize in 20x1 as a result of this investment? a) $18,000 b) $4,000 c) $15,000 d) $16,750

Lincoln company has an accounting policy for internal reporting purposes whereby the costs of any research and development projects that are over 70 percent likely to succeed are capitalized and then depreciated over a five-year period with a full year of depreciation in the year of capitalization. in the current year, $400,000 was spent on project one, and it was 55 percent likely to succeed, $600,000 was spent on project two, and it was 65 percent likely to succeed, and $900,000 was spent on project three, and it was 75 percent likely to succeed. in converting the internal financial statements to external financial statements, by how much will net income for the current year have to be reduced? a. $180,000b. $380,000c. $720,000d. $900,000

Aminor has the legal right to repudiate

Wilson company paid $5,000 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date. the balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. the adjusting entry required on december 31 is: (a) debit cash. $5,000: credit prepaid insurance. $5,000. (b) debit prepaid insurance. $2,500: credit insurance expense. $2500. (c) debit prepaid insurance. $1250: credit insurance expense. $1250. (d) debit insurance expense. $1250: credit prepaid insurance. $1250. (e) debit insurance expense. $2500: credit prepaid insurance. $2500.