Question 7) These items are taken from the financial statements of D Smith Co, at December 31, 2020, Buildings
$105,800
Accounts receivables
12.270
Prepaid insurance
3,200
Cash
11.840
Equipment
82,400
Dividends
330
Land
61,200
Insurance expense
780
Depreciation expense
5,300
Interest expense
2,600
Common stock
60,000
Retained earnings (January 1, 2020) 40,000
Accumulated depreciation - buildings 45,600
Accounts payable
9,500
Notes payable
93.600
Accumulated depreciation - equipment
18,720
Interest payable
3.600
Service revenue
14,700
Instructions: Prepare a classified balance sheet (in color) in good form. Assume that $17,777 of the notes
payable will be paid in 2021.

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?

Rosie and her brother michael decided recently to purchase an rv together. they both want to use the rv to take their families camping. the price of the rv was $10,000. since michael expects to use the rv 60% of the time and rosie 40% of the time, michael contributed $6,000 and rosie contributed $4,000. their ownership percentage equals their contribution percentage. which type of property titling should they use to reflect their ownership interest?

Tl & co. is following a related-linked diversification strategy, and soar inc. is following a related-constrained diversification strategy. how do the two firms differ from each other? a. soar inc. generates 70 percent of its revenues from its primary business, while tl & co. generates only 10 percent of its revenues from its primary business. b. soar inc. pursues a backward diversification strategy, while tl & co. pursues a forward diversification strategy. c. tl & co. will share fewer common competencies and resources between its various businesses when compared to soar inc. d. tl & co. pursues a differentiation strategy, and soar inc. pursues a cost-leadership strategy, to gain a competitive advantage.