During january 2007, wells, inc. acquired 30% of the outstanding common stock of wilton co. for $1,400,000. this investment gave wells the ability to exercise significant influence over wilton. wilton's assets on that date were recorded at $6,400,000 with liabilities of $3,000,000. any excess of cost over book value of wells' investment was attributed to unrecorded patents having a remaining useful life of ten years. in 2007, wilton reported net income of $600,000. for 2008, wilton reported net income of $750,000. dividends of $200,000 were paid in each of these two years. what was the reported balance of wells' investment in wilson co. at december 31, 2008

$1,609,000

Explanation:

Book value of the investment:

= (Reported Assets - Reported Liabilities) × Acquired 30% of outstanding common stock

= $(6,400,000 - 3,000,000) × 30%

= $1,020,000

Excess of cost over book value:

= Acquired common stock - Book value of the investment

= $1,400,000 - $ 1,020,000

= $ 380,000

Increase in the value of investment at the end of 2007:

= (Net income × 30 %) - (Excess of cost over book value ÷ 10) - (Dividends × 30%)

= ($600,000 × 30 %) - ($380,000 ÷ 10) - ($200,000 × 30%)

= $82,000

Increase in the value of the investment during 2008:

= (Reported net income × 30%) - (Excess of cost over book value ÷ 10) - (Dividends × 30%)

= ($750,000 × 30%) - $38,000 - ($200,000 × 30%)

= $127,000

Reported balance of the investment of Wells Inc. in Wilton Co. :

= Acquired common stock + Increase in the value of investment at the end of 2007 + Increase in the value of the investment during 2008

= $1,400,000 + $82,000 + $127,000

= $1,609,000

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

answer; risk transference;