1 answer

Winston Corporation owns 25% of the voting stock of Tole Corporation and uses the equity method...

Question:

Winston Corporation owns 25% of the voting stock of Tole Corporation and uses the equity method in recording the investment. Tole Corporation reported a $50,000 net loss. Winston Corporation's entry would include a

a. debit to the cash account for $12,500.

b. debit to the investment account for $12,500.

c. debit to the investment account for $50,000.

d. credit to the investment account for $12,500.


Answers

Equity method of investment recording is the method used where the initial cost of investment is changed according to the net income or loss earned by the investment . In the sense that where there is net income the investment value is increased and on the other hand where there is loss , the investment value is decreased .

Investment account being the asset account has a debit balance so , to reduce the balance due to net loss we should credit investment account.

Amount to be credited = 50,000 * 25 % voting rights

= $ 12500

Thus , the correct answer is - Option d. credit to investment account for $ 12500

.

Similar Solved Questions

1 answer
Q3 please using matlab zain Jo. Ø 73 3:45 • nering Q1: a function with the...
q3 please using matlab zain Jo. Ø 73 3:45 • nering Q1: a function with the name "Area Circumference to calculate the area and circumference tput) of a rectangle. Define the inputs of this function as required. (6marks) Write a manuscript to solve the following system of equations ba...
1 answer
In 2001 a total of 15,555 homicide deaths occurred among males and 4,753 homicide deaths occurred...
In 2001 a total of 15,555 homicide deaths occurred among males and 4,753 homicide deaths occurred among females. the estimated 2001 midyear populations for males and females were 139,813,000 and 144, 984,000 respectively. 1. Calculate the homicide related death rates for males and for females per 10...
1 answer
4. What is the current in the 10-2 resistor shown in the figure? 21 V 5Ω...
4. What is the current in the 10-2 resistor shown in the figure? 21 V 5Ω 10 Q 5Q 5 Q а. 0.60 A b. 3.0 А 1.2 A с. d. 2.4 A 0.30 A е. W...
1 answer
Ball Kick Kick a ball(like a punt)and measure the following two things. We will assume the...
Ball Kick Kick a ball(like a punt)and measure the following two things. We will assume the ball is kicked from the ground: 1. Time in air: 168cec 2. Distance travelled in meters: _5.3 meters Assume you are kicking the ball from the ground. Calculate each of the following: 3. Horizontal Velocity lv.)...
1 answer
Find Deneb in the diagram. What do you know about it? Choose the best answer. a...
Find Deneb in the diagram. What do you know about it? Choose the best answer. a Deneb fuses via the pp fusion chain. b Deneb is colder and brighter than the Sun. c Deneb is larger and bluer than the Sun. d Deneb will evolve into a white dwarf. e Deneb is a giant star....
1 answer
What is found on schedule M-2 for 1065
What is found on schedule M-2 for 1065...
1 answer
10.14] A Brazilian- in pounds? ratingin oaunh:ade clerri winch for my Ford Ranger pickup is rated...
10.14] A Brazilian- in pounds? ratingin oaunh:ade clerri winch for my Ford Ranger pickup is rated at 90 kN. What is this lod rating 11.14] Determine the equivalent capacitance ofa 0.0047 μF and 2200 pF capacitor place 12.[4] Determine the equivalent resistance of a 470 Ω and 1.0 Ma resistor...
1 answer
Help me Answering this question please. Show units please If 2.46 m of a gas initially...
Help me Answering this question please. Show units please If 2.46 m of a gas initially at STP is placed under a pressure of 3.15 atm , the temperature of the gas rises to 33.6 °C Part A What is the volume? v = 2.76 m Submit Previous Answers Request Answer X Incorrect; Try Again; 5 attempts re...
1 answer
What is the Catholic Church's stance on Health Care Reform. Why has this been such a...
What is the Catholic Church's stance on Health Care Reform. Why has this been such a complicated issue for the Church?...
1 answer
If Microsoft decides to invest 3 million dollars, and believes it will have sales of 100k...
If Microsoft decides to invest 3 million dollars, and believes it will have sales of 100k in the first year and after that sales will increase by 25% per year for the next 3 years. Also, after those 3 years sales will then grow at a constant 3% rate forever. Market risk premium of 4.4% Should I make...
1 answer
Take a position on whether or not a nursing home facility should be held accountable if...
Take a position on whether or not a nursing home facility should be held accountable if two residents develop a intimate relationship and soon becomes pregnant? Would this be a violation of the policy within the facility?...
1 answer
Answer all parts. How many liters does each of the following quantities of O, occupy at STP: (a) 6.9 mol; (b) 0.69...
answer all parts. How many liters does each of the following quantities of O, occupy at STP: (a) 6.9 mol; (b) 0.69 mol;?...
1 answer
Gobert Corporation manufactures wooden tables and chairs. Their estimated direct manufacturing costs (cost of the wood,...
Gobert Corporation manufactures wooden tables and chairs. Their estimated direct manufacturing costs (cost of the wood, cost of labor of employees cutting wood and assembling tables and chairs) are $38/unit. Gobert Corp. expects to incur indirect overhead costs of $80,000 per month. Expected product...
1 answer
Write the function in terms of unit step functions. Find the Laplace transform of the given...
Write the function in terms of unit step functions. Find the Laplace transform of the given function. Įt, f(t) t, ost<3 10, t23...
1 answer
12. [-/1 Points] DETAILS SERCPWA114.WA.010. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER An object of mass...
12. [-/1 Points] DETAILS SERCPWA114.WA.010. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER An object of mass 0.77 kg is initially at rest. When a force acts on it for 2.9 ms it acquires a speed of 16.2 m/s. Find the magnitude (in N) of the average force acting on the object during the 2.9 ms time interv...
1 answer
Accounts Receivable Turnover Using the following data, calculate this company's accounts receivable turnover. Round your answers...
Accounts Receivable Turnover Using the following data, calculate this company's accounts receivable turnover. Round your answers to two decimal places. Accounts receivable balance, December 31 $54,000 Inventory balance, December 31 59,000 Sales revenue 520,000 Cost of goods sold 310,000 Accounts...