Business, 16.04.2020 01:31 andrejr0330jr

Atlarge Inc. owns 30% of the outstanding voting common stock of Ticker Co. and has the ability to significantly influence the investee’s operations and decision-making. On January 1, 2018, the balance in the Investment in Ticker Co. account was $402,000. Amortization associated with the purchase of this investment is $8,000 per year. During 2018, Ticker earned income of $108,000 and paid cash dividends of $36,000. Previously in 2017, Ticker had sold inventory costing $28,800 to Atlarge for $48,000. All but 25% of this merchandise was consumed by Atlarge during 2017. The remainder was used during the first few weeks of 2018. Additional sales were made to Atlarge in 2018; inventory costing $33,600 was transferred at a price of $60,000. Of this total, 40% was not consumed until 2019.What amount of equity income would Atlarge have recognized in 2018 from its ownership
interest in Ticker?
A. $19,792.
B. $27,640.
C. $22,672.
D. $24,400.
E. $21,748.

What was the balance in the Investment in Ticker Co. account at the end of 2018?
A. $401,136.
B. $413,872.
C. $418,840.
D. $412,432.
E. $410,148.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 20:20

John has served as the chief operating officer (coo) for business graphics, inc., a publicly owned firm, the past 5 years. which of the following statements about john is correct? both john and the ceo of business graphics must certify to the sec that the firm's financial statements are accurate. as the coo, john will be ranked higher than the ceo but still below the cfo. in john's postition as the coo, it is highly unlikely that he would also be the chairperson of the board of directors. as the coo, john would typically be involved with accounting, finance, and asset purchase decisions.

Answers: 2

Answer

Business, 23.06.2019 03:00

By changing its recipe, a smoothie chain is reacting to a change in the environment. while it is important to be able to quickly adapt, it is also important to take a proactive approach to changes in the marketing environment. implementing a proactive approach requires constantly scanning and analyzing the environment so that changes do not come as a surprise. the statements below are findings from environmental scanning and analysis. select the marketing environment force that best describes each of the statements listed.

Answers: 3

Answer

Business, 23.06.2019 04:00

Which of the following should be considered last when searching for financing

Answers: 2

Answer

Business, 23.06.2019 17:00

4. why do you think it is important to follow the markkula centers steps to making good decisions?

Answers: 2

Answer

You know the right answer?

Atlarge Inc. owns 30% of the outstanding voting common stock of Ticker Co. and has the ability to si...