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Answer:
Date Account title and Explanation Debit Credit
Investment in nursery supplies share $69 million
Cash $69 million
(To record equity investment)
Investment in nursery supplies share $8 million
(40 million*20%)
Investment revenue $8 million
(To record share in net income reported by N' supplies)
Cash $7.5 million
(20 million*25%*1.50)
Investment in nursery supplies share $7.5 million
(To record share in dividend received from N' supplies)
Answer: Diversification
Explanation:
Diversification refers to the process of enlarging the range or products, processes or field of operation in the attempt to minimize risk and maximize profits. Richard could see the demand for tow-able recreational vehicles declining so beginning in the early 1970s he used his equipment, employees, and professional network to design and build utility trucks, a more recession-resistant industry. Thus, Richard's act of varying the product from tow-able recreational vehicles to building utility trucks is an example of diversification.
Answer:
FALSE
The statment is false, the gain is 15,000
Explanation:
When there is commercial substance the exchange of long-term assets will recognize a gain or a loss on exchange.
When there isn't the diference will be adjusted using the value of the new asset.
In this case <u>we have commercial substance,</u> so the buyer will report a gain on exchange for 15,000 which is the allowance made by the seller.
The value has 15,000 trade-in allowance. Which means it value is for 25,000
So the diference between the current fixed asset and the new one is 15,000
25,000 - 10,000 = 15,000
The statment is false, the gain is 15,000
Answer:
B. Raw Materials
Explanation:
Raw materials are the basic components of manufacturing and production process in a goods manufacturing entity. Raw Materials are used in the production of a finished products (such as Crude
Oil is a raw material for Petrol, Milk is a raw material for Yogurt, Yarn is a raw material for Garment whereas Petrol, Yogurt and Garment are the finished products).
Keeping in view the above discussion, the leather purchased by the Tamara, to be used on some of the furniture to be manufactured by the Everything New, shall be classified as Raw Materials.
Answer is B. Raw Materials