Ask Question
BusinessBusiness
23 February, 18:45

Amortization related to overvalued equipment Select one: A. increases consolidated net income. B. increases the parent's reported net income under the equity method. C. increases consolidated expenses. D. Both A and B are correct.

+5
Answers (1)
  1. 23 February, 22:36
    0
    Answer: D. Both A and B are correct.

    Explanation: Amortization is the reduction or paying off debt over time in a series of payments of interest and principal sufficient to repay the loan in full by its maturity date. As an accounting technique, it is used to periodically lower the book value of a loan or intangible asset over a period of time. Amortization related to overvalued equipment increases consolidated net income and under the equity method (a method used in the valuation of a firm's investment in another when it holds significant influence over the firm being invested in), it increases the parent's reported net income.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Amortization related to overvalued equipment Select one: A. increases consolidated net income. B. increases the parent's reported net ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Proper segregation of functional responsibilities calls for separation of: A. custody, execution, and reporting. B. authorization, recording, and custody. C. authorization, payment, and recording. D. authorization, execution, and payment.
Answers (1)
Under a contractionary taxation policy, the government tries to improve its finances by
Answers (1)
If the nicks were to play against cavs who will win?
Answers (1)
What type of inmate labor system puts inmates to work cleaning public parks and maintaining roads and highways? select one:?
Answers (1)
A company's competitors are other companies that are trying to do what? A. Make a profit B. Analyze demographic trends C. Use their personal skills and abilities D. Take advantage of the same opportunity
Answers (1)
New Questions in Business
Which of the following statements is true of theories in economics? Theories in economics A. are used to construct models from which quantitative predictions can be made. B.
Answers (1)
Reducing (and sometimes eliminating) the size of engineering staffs has become a recent trend among airlines since they are no longer as involved with the design of new aircraft. A. True B. False
Answers (1)
Ashton Bank knows that its customer, Juan, has died. One day after Juan's death, Ashton Bank was presented a check for clearing of $3,000. The check was written by Juan a week prior to his death to Bailey Enterprises.
Answers (1)
Which of the following may be true for a company pursuing a strategy of unrelated diversification rather than a strategy of related diversification? a. The company has to achieve coordination between business units. b.
Answers (1)
Private markets fail to reach a socially optimal equilibrium when positive externalities are present because the A. private cost exceeds the private benefit at the private market solution. B.
Answers (1)
Home » Business » Amortization related to overvalued equipment Select one: A. increases consolidated net income. B. increases the parent's reported net income under the equity method. C. increases consolidated expenses. D. Both A and B are correct.
Sign Up Forgot Password?