Nance Company owns 40% interest in the shares of Finley Corporation. During the year,Finley pays $25,000 in dividends, and reports $100,000 in net income. Nance Company’sinvestment in Finley will increase by
ANSWER: The investor reports his or her portion of the investee’s net income using the equity method, in this case 40% of $100,000 = $40,000.
Osaka Co. acquired a 10% interest in Chen Corp. on December 31, 2013 for HK$3,780,000. During 2014, Chen had net income of HK$2,400,000 and paid cash dividends of HK$600,000. Osaka’s 2014 income statement will report
a. dividend income of HK$60,000.
b. investment income of HK$180,000.
c. investment income of HK$240,000.
d. cannot be determined from the information given.
Osaka’s share of Chen’s net income for 2014 is 10% × HK$2,400,000 = HK$240,000.
Osaka’s share of Chen’s cash dividends for 2014 is 10% × HK$600,000 = HK$60,000.
Osaka’s investment income for 2014 is therefore HK$240,000 – HK$60,000 = HK$180,000.
Aram is proficient in playing a number of instruments and can easily learn new songs and rhythms. This exemplifies ________ intelligence.
Natural concepts are mental groupings created naturally through our ________.
Knowing what a dinosaur is because you looked through a book with pictures of dinosaurs and watched the film Jurassic Park is an example of a natural concept that was developed through ________ experience.
Kai cuts her foot while hiking. She forgot to pack bandages, but she has a tube of superglue and uses that to seal the wound. Kai’s ability to invent a solution uses the ________ intelligence component of the triarchic theory of intelligence.
The What Went Wrong feature in Chapter 13 focuses on Dishero, that operates in the restaurant space. Its primary service was ________ food.