Discussion mini-essay post #3 and peer response: complex and | IDS 3309 | Florida International University, Modesto A. Maidique Campus

The mini essays posted in response to the discussion questions are part of the Gordon Rule writing assignments. Each mini essay should contain 200 words for a total of 800 words toward the Gordon Rule requirements.

The instructor will post one discussion question that serves as our class discussion. This is where you will add your experiences as well as additional sources to the topics of the week. Each original post is worth 5% of your final grade.

These posts are to be discussions and NOT reiterations of the material. You should bring original thoughts to the conversation and NOT simply summarize the information. Think critically and bring to light ideas and/or concepts that are new and share a different perspective.

Discussion Post Question: With specific examples, explain and describe the complex and interdependent relationship between consumers, advertisers, media companies, and media employees.

Directions for each discussion mini-essay post:

Think critically about your answers and write thoughtful and insightful sentences.
Students are expected to: (1) originate their own post AND (2) respond to at least TWO additional classmate’s thread. Make sure you include the other classmate’s FULL NAME when responding.
Original posts should be 200 words long. Responses to your peers’ posts have no word limit, but to receive full credit you must respond to specific ideas from their original post, not simply indicate that you agree or that you liked it. Good posts should be concise and to the point and should not ramble or deviate from your point. Posts that are way under or way over the word count will result in a loss of points.
This is not a case of how much you say, but rather how you reason and support your argument.
Proper grammar, sentence structure, and paragraph-format are required.
Refrain from just “agreeing” or “liking” your fellow classmate’s response.

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July 1, 2023

11.When using the equity method to account for an investment, cash dividends received by the investor from the investee should be recorded:
A.As a reduction in the Investments account.
B.As an increase in the Investments account.
C.As dividend income.
D.As a contra item to stockholders' equity.

12.The equity method of accounting for investments in voting common stock is appropriate when:
A.The investor can significantly influence the investee.
B.The investor has voting control over the investee.
C.The investor intends to hold the common stock indefinitely.
D.The investor is assured of a continued supply of a valuable raw material.

13.Sports Spectacular purchased 100,000 shares of stock in The Athletic Warehouse for $30 per share. The investment is properly recorded using the equity method. By the end of the year, the stock price has increased to $32 per share. How would the change in stock price affect Sports Spectacular's net income under the equity method?
A.Increase net income by $32,000.
B.Increase net income by $30,000.
C.Increase net income by $2,000.
D.No effect.

14.On January 1, 2012, Gilman Company purchased 10,000 of the 40,000 shares of common stock of Burke Corporation at $40 per share as a long-term investment. Gilman can exercise significant influence over Burke and properly records the investment using the equity method. The records of Burke Corporation showed the following at December 31, 2012:

What amount should Gilman Company report in its December 31, 2012, balance sheet for its investment in Burke?
A.$380,000.
B.$400,000.
C.$475,000.
D.$425,000.

15.Consolidated financial statements are prepared when one company has:
A.Accounted for the investment using the equity method.
B.Accounted for the investment as available-for-sale securities.
C.Control over another company.
D.None of these is correct.

16.Which of the following investment securities held by Zoogle Inc. may be classified as held-to-maturity securities in its balance sheet?
A.Debt securities.
B.Equity securities.
C.Common stock.
D.All of these are correct.

17.General Investment Co. (GIC) purchased bonds on January 1, 2012. GIC's accountant has projected the following amortization schedule from purchase until maturity:

GIC purchased the bonds:
A.At par.
B.At a discount.
C.At a premium.
D.Cannot be determined from the given information.

18.General Investment Co. (GIC) purchased bonds on January 1, 2012. GIC's accountant has projected the following amortization schedule from purchase until maturity:

GIC purchased the bonds for:
A.$200,000.
B.$194,758.
C.$242,000.
D.Cannot be determined from the given information.

19.General Investment Co. (GIC) purchased bonds on January 1, 2012. GIC's accountant has projected the following amortization schedule from purchase until maturity:

Recording the bond purchase would have what effect on the financial statements?
A.Increase assets.
B.Increase liabilities.
C.Increase assets and liabilities.
D.No effect on total assets and total liabilities.

20.General Investment Co. (GIC) purchased bonds on January 1, 2012. GIC's accountant has projected the following amortization schedule from purchase until maturity:

The investment in bonds has a maturity in:
A.Two years.
B.Three years.
C.Six years.
D.Cannot be determined from the given information.

21.General Investment Co. (GIC) purchased bonds on January 1, 2012. GIC's accountant has projected the following amortization schedule from purchase until maturity:

What is the annual market interest rate on the bonds?
A.4%.
B.3.5%.
C.7%.
D.8%.

22.General Investment Co. (GIC) purchased bonds on January 1, 2012. GIC's accountant has projected the following amortization schedule from purchase until maturity:

GIC sells the bonds for $196,000 immediately after the interest payment on 12/31/12. What gain or loss, if any, would GIC record on this date?
A.No gain or loss.
B.$370 loss.
C.$4,000 loss.
D.$4,000 gain.