Answer:
c.GAS Running Company is required to use the equity method for this investment.
Explanation:
a.GAS Running Company is the subsidiary company.
-> wrong, because in this case Gas Running Company own shares of Zoom Shoes Inc., not vice versa
b.Zoom Shoes Inc. is the parent company.
-> wrong, same explanation as above for (a)
c.GAS Running Company is required to use the equity method for this investment.
-> true
Equity method in accounting is the process of treating investments in associate companies... is used in accounting when a company holds approximately 20% to 50% of a company's stock and this is considered to have significant influence.
The holding of Gas Running Company in Zoom Shoes Inc. is 30.4% (=35,000 shares/ 115,000 shares of stock outstanding), is less 50% stakes. That requires Gas Running Company to use Equity method accounting to use the equity method for this investment.
d.GAS Running Company is required to combine the financial statements of Zoom Shoes Inc. and report as a single company.
-> wrong, same explanation as above for (c)
Answer:
Please see explanation
Explanation:
My take home salary when i was making $38,000 is given below:
Take home salary=$38,000*88%=$33,440
My take home salary when i will be making $43,000(38,000+5,000) for new role is given below:
Take home salary=$43,000*84%=$36,120
So the increase in my salary is $2,680 (36,120-33,440) due to new job and raise and therefore i should accept it.
Answer:
Review all the Markups and make the requiered changes
Explanation:
Track changes permits to edit a text before the final version its complete, then reviewing all the Markups made in the editing process is critical to define the final version of the text that then will be share.
Answer:
c. Your fixed lot size was equal to the EOQ.
Explanation:
At economic order quantity, the Holding cost is equal Ordering cost
. Since Holding cost is higher than the Ordering cost, less number of orders are placed and more inventory is being stored.