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kvasek [131]
2 years ago
7

Marshmallow, inc., accounted for an investment in sweet wheat cracker co. using the equity method. during the current year, mars

hmallow sold a sizable portion of the security interest, such that marshmallow no longer holds significant influence over sweet wheat cracker. marshmallow suspects the equity method is no longer appropriate.
which section of the accounting standard codification best provides the clearest indication of marshmallow's change in accounting for this investment?
Business
1 answer:
Hunter-Best [27]2 years ago
8 0

The section of the Accounting Standard Codification that is most relative to Marshmallow's change in Accounting is FASB ASC 235-10-50-4.

<h3>What accounting standard codification caters for Marshmallow Inc.?</h3>

This is an accounting standard code that caters for things such as mergers,  intangible stock amortization, and depreciation.

It would therefore show Marshmallow the appropriate accounting standard for leaving a merger.

Find out more on accounting standard codification at brainly.com/question/13610664.

#SPJ1

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Partially amortizing mortgage loans require periodic payments of principal, but are not paid off completely over the loan's term
goblinko [34]

Answer:

A. balloon payment

Explanation:

This may also help:

https://quizlet.com/211116766/fin-370-chapter-15-flash-cards/

5 0
3 years ago
Suppose Nike's managers were considering expanding into producing sports beverages. Why might the company decide to do this unde
lara [203]

Answer:

Te correct answer is the first option: The cost of producing sports beverages along with its current products under the Nike brand name <u>is less</u> than the cost of producing sports beverages under a new brand name plus the cost of producing Nike's current products under the Nike brand name

Explanation:

To begin with, the fact that the managers are looking forward to expand the business and to aggregate sports beverages indicates that the company is doing good in the sales and therefore they have margin to invest in a plan like that. Secondly, the fact that they do it under Nike's name will cost them less than doing it otherwise due the fact that they will not have to pay for a new name and all the registrations and patents that the strategy involves. They will only need to register the new product and even more they would have all the marketing campaign focus on the same audience and will find strength in using the brand and name of Nike for that, in terms of publicity.

4 0
3 years ago
Michael has written an e-mail to his employees that describes a new product special that will be introduced to the
svet-max [94.6K]

Answer:

effective communication

Explanation:

Since Michael is communicating a very important message, it is essential for it to be effectively communicated. This is a crucial step related to making sure your message is structured, organized and easy to comprehend. Especially, it is important in messages like this one - introduction of new concepts/products, instructions to employees...

Effective communication is needed to avoid any potential misconceptions and  consequences related to a badly interpreted message.

3 0
3 years ago
Read 2 more answers
Assume PRC Corp., an equipment distributor, sells a piece of machinery with a list price of $600,000 to ACH Inc. ACH will pay $6
katen-ka-za [31]

Answer:

b. $600,000

Explanation:

The company has to record as revenue the product at the list price, then if exist a special discount on the price list, it must be record as discount applied to products in the Income Statement, separate of Revenue or Gross Sales.

The price that the company ACH pay by the product ($650,000) it's not at change on the price if not due to the payments term which is one year later, so the company ACH has to pay a financial cost because the payment will be made one year later.

6 0
3 years ago
describe the two eligibility requirements to qualify for deducting losses generated from real estate activities.
Zolol [24]

Two exceptions to the special passive activity rule for real estate activities provide the whole or partial offset of real estate rental losses against active or portfolio income, even when the business is otherwise regarded as a passive activity.

<h3>Which rules regarding passive activities for rental revenue are exceptions?</h3>
  • You have a stake in the yearly commerce or economic activities.
  • During the current tax year or at least 2 of the 5 tax years prior, the rental property was utilized primarily in that trade or company.
<h3>Only real estate is subject to passive loss restrictions, right?</h3>

Generally speaking, the following actions can result in passive losses (and income): leasing of equipment. Rental property (though there are some exceptions) a farm or a sole proprietorship in which the taxpayer has no substantial interest.

<h3>How can passive income be balanced?</h3>

Selling off your rental properties will help you make up for your passive losses. You don't actually have to sell the property that's causing the losses to balance them effectively. Any passive income will be offset by losses.

Learn more about special passive activity rule: brainly.com/question/28137310

#SPJ4

7 0
1 year ago
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