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Which of the following is NOT required for an investor to have control over an investee? Select one: OA. The investor must have power over
Which of the following is NOT required for an investor to have control over an investee? Select one: OA. The investor must have power over the investee. O B. The investor must be able to use its power to affect the amount of its returns. OC. The investor must currently own a majority of the voting shares of the investee. OD. The investor must have exposure to variable returns from the investment. 1 it Mean Beans, a local coffee shop, has the following assets on January 1, 2020. Mean Beans prepares annual financial statements and has a December 31, 2020 year-end. The company's depreciation policy is to use the straight-line method to depreciate its assets a. On January 1, 2020, purchase equipment costing $20,900 with an estimated life of five years. Mean Beans will scrap the equipment after five years for $0. b. On July 1, 2020, purchase furniture (tables and chairs) costing $21.900 with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $3,000 after ten years. c. On January 1, 2018, Mean Beans had purchased a car costing $30,250 with an estimated life of eight years. Mean Beans estimates that it can sell the car for $6.050 after eight years. Required: 1-a. For each transaction, calculate the current year annual depreciation expense. a. Annual depreciation expense on equipment b. Annual depreciation expense on furniture Annual depreciation expense on car
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