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agasfer [191]
3 years ago
15

Mittelstaedt Inc., buys 60 percent of the outstanding stock of Sherry, Inc. Sherry owns a piece of land that cost $207,000 but h

ad a fair value of $549,000 at the acquisition date. What value should be attributed to this land in a consolidated balance sheet at the date of takeover?A. $549000B. $337000C. $127200D. $421800
Business
1 answer:
vovikov84 [41]3 years ago
8 0

Answer:

A. $549000

Explanation:

Given information

Number of outstanding stock of Sherry, Inc = 60%

The cost of the land = $207,000

Fair value at the acquisition date = $549,000

By considering the above information, the value reflected in a consolidated balance sheet is $549,000.

The historical principle says that the fixed assets should be recorded at the purchase price or acquisition cost only and the same is to be considered

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The point that each glass of lemonade consumed on a hot day brings lower and lower levels of satisfaction is known as the princi
givi [52]

Answer:

decreasing marginal benefit.

Explanation:

A consumer measures the amount of satisfaction gained by consuming a product in making a buying decision.

When a person comes a product his satisfaction increases up to a point, and from that point as consumption increases the satisfaction derived reduces.

Consumption after this point is known as decreasing marginal benefit to the customer.

This affects the customer's willingness to buy more of this product. Patronage of lemonade will reduce as the customer looks for another product to satisfy his needs.

8 0
3 years ago
Companies HD and LD have the same tax rate, sales, total assets, and basic earnings power. Both companies have positive net inco
sukhopar [10]

Answer:

Company HD pays less in taxes

Explanation:

In the case when the company HD and LD have the similar rate of tax, sales revenue,  etc even both have favorable net incomes also the company Hd contains greater debt ratio due to which it has more interest expense so that means company hd would pay less taxes

Therefore the above represent the answer

and, this is the answer but the same is not provided in the given options

5 0
3 years ago
Read 2 more answers
Financial statements with data for two or more successive accounting periods placed in columns side by side, sometimes with chan
RideAnS [48]
The above is referred as Comparative statements. A comparative statement is an archive that contrasts a specific budgetary proclamation and earlier period articulations or with the same monetary report produced by another organization. Examiner and business supervisors utilize the wage explanation, monetary record and income proclamation for relative purposes.
6 0
3 years ago
According to PCN analysis, which process region includes process steps in which one participant is acting on another participant
mamaluj [8]

Options:

A. Independent processing

B. Surrogate Interaction

C. Direct interaction

D. Resource processing

E. Process domain Interaction.

Answer:B. Surrogate Interaction

Explanation:

PCN(preassigned control number) PROGRAM is a program system designed to allow the Library of Congress to assign control numbers in advance of a publication to those titles which may be included to collections of materials in the Library. PCN number is only assigned to publishers in the United States of America.

Surrogate Interaction is a type of Interaction taking place in a PCN program where there are no direct interaction.

3 0
3 years ago
Rowell Company spent $3 million two years ago to build a plant for a new product. It then decided not to go forward with the pro
ELEN [110]

Answer:

B. If the building could be sold, then the after-tax proceeds that would be generated by any such sale should be charged as a cost to any new project that would use it.

Explanation:

The proceeds from a potential sale are the opportunity cost of using the building for a given project instead of selling to a third party. Not including any cost will lead to project not recovering the entire capital used in it.

Is important to notice this is the after-tax proceeds from the sale of the building.

3 0
3 years ago
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