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Question - On January 1, 2020, Abalone Ltd. acquired 30% of Flounder Corp.'s common shares for $240,000. During 2020, Flounder reported net income of $100,000 and paid total dividends of $60,000. Abalone's 30% interest in Flounder gives Abalone the ability to exercise significant influence over their operating and financial policies. During 2021, Flounder reported net income of $150,000 and paid total dividends of $30,000 on April 1 and $40,000 on October 1. The income was earned evently over the year. Hint: Pro-rate income to the date of the sale. On July 1, 2021, Abalone sold half of its shares in Flounder for $158,000 cash. Find the gain on disposal of this investment in Abalone's 2021, income statement?
Two surveys were conducted to measure the effectiveness of an advertising campaign for a low-fat brand of peanut butter. In one of the surveys, the interviewers visited the home and asked whether the low-fat brand was purchased.
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Calculate the net income for the firm. If the company paid out $77,000 in cash dividends, calculate the increase to retained earnings
Southwest Airlines received a charter granting the right to issue 100,000 shares of $100 par value, 6% cumulative
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elwood inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of
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home products company manufactures a complete line of kitchen glass-ware. the beverage division specializes in 12-ounce
(a) Describe the value to the audit client of the audit firm providing consultancy services. (b) Why is it undesirable for audit firms to provide consultancy services to audit clients?
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