Related questions with answers

Poom Manufacturing used cash to acquire 75 percent of the voting stock of Satellite Industries on January 1, 20X3, at underlying book value. At that date, the fair value of the non-controlling interest was equal to 25 percent of Satellite's book value. Poom accounts for its investment in Satellite using the equity method.

Poom had no inventory on hand on January 1, 20X5. During 20X5, Poom purchased $300,000 of goods from Satellite and had$100,000 remaining on hand at the end of 20X5. Satellite normally prices its items so that their cost is 70 percent of sale price. On January 1, 20X5, Satellite held inventory that it had purchased from Poom for $50,000. Poom's cost of producing the items was$30,000. Satellite sold all of the merchandise in 20X5 and made no inventory purchases from Poom during 20X5.

On July 15,20X5, Satellite sold land that it had purchased for $240,000 to Poom for$360,000. The companies file separate tax returns and have a 40 percent income tax rate. Poom does not record tax expense on its portion of Satellite's undistributed earnings. Tax expense recorded by Poom in 20X5 with regard to its investment in Satellite is based on dividends received from Satellite in 20X5. In computing taxable income, 80 percent of inter-corporate dividend payments are exempt from tax. Satellite reported net income of $190,000 for 20X5 and net assets of$900,000 on December 31, 20X5. Poom's reported income before investment income from Satellite and income tax expense of $700,000 for 20X5. Satellite and Poom paid dividends of$150,000 and $400,000, respectively, in 20X5.


Compute the income assigned to the non-controlling interests in the 20X5 consolidated income statement.

Challenge Problem.

(a) The solubility of CdS\mathrm{CdS} is ordinarily very low, but can be increased by lowering the solution pH\mathrm{pH}. Calculate the molar solubility of CdS\mathrm{CdS} as a function of pH\mathrm{pH} from pH11\mathrm{pH} 11 to pH\mathrm{pH} 1. Find values at every 0.5pH0.5 \mathrm{pH} unit and plot solubility versus pH\mathrm{pH}.

(b) A solution contains 1×104M1 \times 10^{-4} \mathrm{M} of both Fe2+\mathrm{Fe}^{2+} and Cd2+\mathrm{Cd}^{2+}. Sulfide ions are slowly added to this solution to precipitate either FeS\mathrm{FeS} or CdS\mathrm{CdS}. Determine which ion precipitates first and the range of S2\mathrm{S}^{2-} concentration that will allow a clean separation of the two ions.

(c) The analytical concentration of H2 S\mathrm{H}_2 \mathrm{~S} in a solution saturated with H2 S( g)\mathrm{H}_2 \mathrm{~S}(\mathrm{~g}) is 0.10M0.10 \mathrm{M}. What pH\mathrm{pH} range is necessary for the clean separation described in part (b)?

(d) If there is no pH\mathrm{pH} control from a buffer, what is the pH\mathrm{pH} of a saturated H2 S\mathrm{H}_2 \mathrm{~S} solution?

(e) Plot the α0\alpha_0 and α1\alpha_1 values for H2 S\mathrm{H}_2 \mathrm{~S} over the pH\mathrm{pH} range of 10 to 1 .

(f) A solution contains H2 S\mathrm{H}_2 \mathrm{~S} and NH3\mathrm{NH}_3. Four Cd2+\mathrm{Cd}^{2+} complexes form with NH3\mathrm{NH}_3 in a stepwise fashion: Cd(NH3)2+,Cd(NH3)22+,Cd(NH3)32+\mathrm{Cd}\left(\mathrm{NH}_3\right)^{2+}, \mathrm{Cd}\left(\mathrm{NH}_3\right)_2^{2+}, \mathrm{Cd}\left(\mathrm{NH}_3\right)_3^{2+}. and Cd(NH3)42+\mathrm{Cd}\left(\mathrm{NH}_3\right)_4^{2+}. Find the molar solubility of CdS in a solution of 0.1MNH30.1 \mathrm{M} \mathrm{NH}_3

(g) For the same solution components as in part (f), buffers are prepared with a total concentration of NH3+NH4Cl=0.10M\mathrm{NH}_3+\mathrm{NH}_4 \mathrm{Cl}=0.10 \mathrm{M}. The pH\mathrm{pH} values are 8.0,8.5,9.0,9.5,10.0,10.58.0,8.5,9.0,9.5,10.0,10.5, and 11.0. Find the molar solubility of CdS\mathrm{CdS} in these solutions.

(h) For the solutions in part (g), how could you determine whether the solubility increase with pH\mathrm{pH} is due to complex formation or to an activity effect?


Joseph reads a lot about people who are success oriented. He loves to learn about courage, risk taking, and as he describes it, "the road less traveled." His local bookstore has a large business section where he has found biographies of entrepreneurs and maverick corporate leaders. He also finds fascinating some of the books he has seen on financial planning and ways to accumulate wealth. One interesting savings plan he read about challenges the reader to put aside one full paycheck at the end of the year as a "holiday present to yourself." Joseph had never thought about saving in that way, and wondered if it would really accumulate much savings.

Joseph was amazed at how much he could save in this manner and decided to design a detailed savings plan based on projected yearly increases. He realized that he could not start depositing $1,500\$ 1,500 now, but that he would be able to deposit more than that in the future. If he were able to deposit $1,000\$ 1,000 at the end of each year for the next 5 years at 8%8 \% compounded annually, $1,500\$ 1,500 at the end of years 6106-10 at 8%8 \% compounded annually, and $2,000\$ 2,000 at the end of years 113511-35 at 5%5 \% compounded annually, how much would he accumulate at the end of 3535 years? Assume that any balances from earlier depositing periods would continue to earn the same rate of annual interest. Use the tables for future value of annuities and compound amount.


Answered 1 year ago
Answered 1 year ago
Step 1
1 of 14

Since Joseph deposits $1,000\$1,000 at the end of each year for next 55 years at 8%8\% annual interest it is an ordinary annuity compounded annually so we need to find the future value of the annuities using given table. To do so, first we need to find the number of interests period and period interest rate as follows:

5 years×1 period per year=5 periods8% annual interest rate1 period per year=8% period interest rate\begin{align*} 5\text{ years} \times 1 \text{ period per year}&=5 \text{ periods}\\ \\ \frac{8\% \text{ annual interest rate}}{1 \text{ period per year}}&=8\% \text{ period interest rate} \end{align*}

Create an account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Continue with GoogleContinue with Facebook

Create an account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Continue with GoogleContinue with Facebook

More related questions