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Brankov Company Purchased Common Stock in Ramona Company for $400,000

question 38

Essay

Brankov Company purchased common stock in Ramona Company for $400,000.In the current year,Ramona Company reported net income of $50,000 and paid a dividend of $32,000.At the end of the year,the market value of the investment in Ramona Company was $410,000.
Required:
A) Assume Brankov Company owns 10% of the shares of Ramona Company. Brankov Company considers the investment to be available-for-sale securities. Show the effects of the transactions above on the accounts of Brankov Company using the balance sheet equation.
B) Assume Brankov Company owns 25% of the shares of Ramona Company. Show the effects of the transactions above on the accounts of Brankov Company using the balance sheet equation.

Comprehend how expectancy theory relates to motivation within path-goal leadership.

Identify how leader behaviors should adjust based on follower and workplace characteristics.

Recognize the historical development and key researchers of path-goal theory.

Appreciate the motivational aspect of path-goal theory.

Definitions:

Net Income

A company's profit margin post the deduction of all expenses and taxation from the total revenue.

Net Loss

The result when a company's expenses exceed its revenues during a specific period, indicating a negative income.

Classified Balance Sheet

A financial statement that segregates assets and liabilities into current and non-current categories, providing a detailed snapshot of a company's financial condition.

Closing Entries

Entries recorded at the conclusion of an accounting cycle to shift balances from temporary accounts to permanent ones.