On january 4, 2021, runyan bakery paid $364 million for 10 million shares of lavery labeling company common stock. the investment represents a 30% interest in the net assets of lavery and gave runyan the ability to exercise significant influence over lavery's operations. runyan chose the fair value option to account for this investment. runyan received dividends of $4.50 per share on december 15, 2021, and lavery reported net income of $350 million for the year ended december 31, 2021. the market value of lavery's common stock at december 31, 2021, was $33 per share. on the purchase date, the book value of lavery's identifiable net assets was $790 million and:
a. the fair value of lavery's depreciable assets, with an average remaining useful life of five years, exceeded their book value by $100 million.
b. the remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill.
required:
assuming runyan accounts for this investment under the fair value option, prepare all appropriate journal entries in a manner similar to accounting for securities for which there is not significant influence. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field. enter your answers in millions.
Answers: 2
Business, 23.06.2019 00:20, 218219
Firms like papa john’s, domino’s, and pizza hut sell pizza and other products that are differentiated in nature. while numerous pizza chains exist in most locations, the differentiated nature of these firms’ products permits them to charge prices above marginal cost. given these observations, is the pizza industry most likely a monopoly, perfectly competitive, monopolistically competitive, or an oligopoly industry?
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Business, 23.06.2019 18:40, thepantsgirl
Sri lanka is one of the major tea producing nations in the world. a substantial portion of the country's annual tea production gets exported to various countries, including the united arab emirates, russia, and other countries in the middle east. given the success in these countries, sri lanka decided to foray into the asian market. research evidence indicated that people in myanmar are major consumers of tea and that there is a high demand for tea in that country. this convinced industry experts in sri lanka that exporting to myanmar was a good idea. even though sri lankan tea was priced competitively, sales in myanmar turned out to be far lower than expected. which of the following, if true, could explain this outcome? a. myanmar exported a substantial amount of its annual tea production that year. b. the tea exported from sri lanka is of the highest quality. c. the myanmar government hiked the minimum wage for labor. d. people in myanmar are willing to pay more for their domestic tea brands than for foreign brands. e. sri lankan tea exports to other asian countries like india and china have also not been very successful.
Answers: 1
On january 4, 2021, runyan bakery paid $364 million for 10 million shares of lavery labeling company...
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