Skill development, more opportunities
Answer:
Stone Foods produces the majority of its cheese products in its U.S. based dairy division at a total outlay cost of $6.00 per unit. A large portion of the finished product is sold to Division B where it is packaged and sold overseas under a different label. The tax rate in Division B's country is higher than the U.S. tax rate. Assume the company desires to minimize the overall tax impact of the transfer (i) what type of relative pre-tax income should each division desire to achieve as a result of the transfer and (ii) what type of transfer price would accomplish your answer to (i).
Dairy Division Income Division B Income Transfer Price
.
Option "D" is the correct answer - High Low High.
Explanation:
Since in Division B, the tax rate is higher than the tax rate in US-based dairy division. Therefore to minimize the impact of the overall tax, transfer price from dairy division should be high to Division B so that the dairy division income would be higher. and the income of Division B would be lower.
Hence option "D" is the correct answer.
Answer:
Emily has a basis of $60,000 in the shares of Red Corporation.
Explanation:
Emily's basis for Red Corporation's stock = real estate ($40,000) + service ($20,000) = $60,000
Sarah's basis for Red Corporation's stock = computers ($80,000) = $80,000
Even though both Emily and Sarah received 600 shares each, the basis for her tax calculations are different.
The Sarbanes-Oxley Act of 2002 requires the CEO (Chief
Executive Officer) and the CFO (Chief Financial Officer) to personally certify
the accuracy of the financial statement that the company has filed with the
Securities and Exchange Commission as
members of senior management.
Answer:
C) Business marketing
Explanation:
There are two major types of business transactions: business to business (B2B) and business to consumers (B2C).
When a company engages in B2B transactions, they are selling their products or services to another business or individual that will resell them to individual consumers. For example, Nike sells shoes to Foot Locker, and then Foot Locker resells them to final consumers.
Businesses engaged in B2B transactions use specific marketing strategies aimed at their wholesale clients which usually vary from marketing strategies aimed at final consumers, e.g. offer discounts for buying in bulk.
