nzelmo Corporation invested in Jones Manufacturing by purchasing a​ 10% interest in the company. Anzelmo had no significant influence in Jones. Over​ time, Anzelmo acquired more shares in​ Jones, and in​ 2016, Anzelmo's president became a member of the board of directors when its ownership interest reached​ 30% of Jones. The cost basis of its investment is​ $2,000,000. Under the equity​ method, the valuation of the investment would be​ $2,400,000. The fair value of the investment is​ $2,600,000. What is the amount of the adjustment to the investment account necessary to properly record the change in accounting​ principal?

Golf Guide is seeking new customers through both direct mail and magazine ads. In a recent period, Golf Guide spent $25,277 on direct mail and spent $34,173 on golf magazine ads. The company gained 548 new customers through its direct mail and gained 805 new customers through its magazine ads. Calculate the overall cost per customer acquired for the combined program of direct mail and magazine ads. (Rounding: nearest penny.)

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Your friend Tom Smith has decided to expand Smith Sales Company. He has acquired an expansion loan and purchased $500,000 of plant assets as part of the expansion. Tom values your advice and requests your help in properly depreciating the plant assets. Tom has paid you well for your advice and you readily accept the challenge.

Explain the different methods that can be used to calculate depreciation including: Straight-line, Double declining balance, Units of production & Sum of years digits.

Firm X is being acquired by Firm Y for $35,000 worth of Firm Y stock (valued at the pre-merger current price of Y). Both firms are all-equity financed. The incremental value created by the merger is $2,500. Firm X has 2,000 shares of stock outstanding at $16 per share. Firm Y has 1,200 shares of stock outstanding at a price of $40 per share. What is the actual cost of the acquisition to Firm Y using company stock? Why is the actual cost less than $35,000?

1. Firm X is being acquired by Firm Y for $35,000 worth of Firm Y stock (valued at the pre-merger current price of Y). Both firms are “all-equity” financed. The incremental value created by the merger is $2,500. Firm X has 2,000 shares of stock outstanding at $16 per share. Firm Y has 1,200 shares of stock outstanding at a price of $40 per share. What is the actual cost of the acquisition to Firm Y using company stock? Why is the actual cost less than $35,000?

Sendelbach Corporation is a U.S.-based organization with operations throughout the world. One of its subsidiaries is headquartered in Toronto. Although this wholly owned company operates primarily in Canada, it engages in some transactions through a branch in Mexico. Therefore, the subsidiary maintains a ledger denominated in Mexican pesos (Ps) and a general ledger in Canadian dollars (C$). As of December 31, 2017, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows:

• The Canadian subsidiary’s functional currency is the Canadian dollar, and Sendelbach’s reporting currency is the U.S. dollar. The Canadian and Mexican operations are not viewed as separate accounting entities.

• The building and equipment used in the Mexican operation were acquired in 2007 when the currency exchange rate was C$0.20 = Ps 1.

• Purchases of inventory were made evenly throughout the fiscal year.

• Beginning inventory was acquired evenly throughout 2016; ending inventory was acquired evenly throughout 2017.

• The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into C$7,680 on December 31, 2017.

• Currency exchange rates for 1 Ps applicable to the Mexican operation follow:

• The December 31, 2016, consolidated balance sheet reported a cumulative translation adjustment with a $52,950 credit (positive) balance.

• The subsidiary’s common stock was issued in 2004 when the exchange rate was $0.45 = C$1.

• The subsidiary’s December 31, 2016, retained earnings balance was C$151,590, an amount that has been translated into U.S.$69,663.

• The applicable currency exchange rates for 1 C$ for translation purposes are as follows:

1. Remeasure the Mexican operation’s account balances into Canadian dollars. (Note: Back into the beginning net monetary asset or liability position.)

2. Prepare financial statements (income statement, statement of retained earnings, and balance sheet) for the Canadian subsidiary in its functional currency, Canadian dollars.

3. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that Sendelbach can prepare consolidated financial statements.

4. SENDELBACH CORPORATION Financial Statements For the Year Ended December 31, 2017 Canadian Dollar U.S. Dollar Income Statement: Sales C$ Cost of goods sold Gross profit C$ 0 $0.00 Salary expense Utility expense Depreciation expense Gain on sale of equipment Remeasurement loss Net income C$ 0 $0.00 Statement of Retained Earnings: Retained earnings, 1/1/15 C$ Net income Retained earnings, 12/31/15 C$ 0 $0.00 Balance Sheet: Assets: Cash C$ Buildings and equipment Receivables Inventory Total C$ 0 $0.00 Liabilities and Equities: Common stock C$ Cumulative translation adjustment Retained earnings Total C$ 0 $0.00

If a company such as IBM includes other gains and losses in its sales, general and administrative expenses, w

What is the value per share be of a company with the following dividends?

Next years Dividend is expected to be $1.40

Expect Div Growth rates

13.40%

12.70%

10.80%

9.65%

7.70%

ROE = 13.47%

Plowback Rate= 61%

US T-BILL = 1.15%

BETA = 1.07

expect ret in Mkt = 10.83%

Please compute with excel

xercise 12-25 (Algo) Fair value option; held-to-maturity investments [LO12-1, 12-2, 12-3, 12-8] Tanner-UNF Corporation acquired as a long-term investment $290 million of 6% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity, but when the bonds were acquired Tanner-UNF decided to elect the fair value option for accounting for its investment. The market interest rate (yield) was 7% for bonds of similar risk and maturity. Tanner-UNF paid $260 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $270 million. Required: 1. How would this investment be classified on Tanner-UNF's balance sheet? 2. to 4. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021, interest on December 31, 2021, at the effective (market) and fair value changes as of December 31, 2021. 5. At what amount will Tanner-UNF report its investment in the December 31, 2021, balance sheet? 6. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $250 million. Prepare the journal entries to record the sale.