Question
1.An investor company with a 40% interest in an investee properly used the equity method to...
1.An investor company with a 40% interest in an investee properly used the equity method to account for the investment. If the entries to the Investment account for the current year showed a debit of $45,000 and a credit of $22,000, the investee must have paid total dividends of:
A.$22,000
B.$55,000
C.$100,000
D.$45,000
2.Amortization of a discount or premium on the bond affects all of the following
except:
A.retained earnings of the investor
B.the amount of cash received when interest payments are made
C.interest revenue of the investor
D.the carrying value of the bonds on the investor's books
3.Cooper Company has purchased equipment that requires annual payments of $18,000 to be paid at the end of each of the next 6 years. The discount rate is 8%. The present value of $1 for six periods at 8% is 0.630. The present value of an ordinary annuity of $1 for six periods at 8% is 4.623. What amount will be assigned to the equipment? (Round your final answer to the nearest dollar.)
A.$108,000
B.$3,894
C.$94,554
D.$83,214
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